NEW MARKETS TAX CREDITS (NMTC)
The NMTC Program was authorized in the Community Renewal Tax Relief Act of 2000 (PL 106-554) as part of a bi-partisan effort to stimulate investment and economic growth in low income communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies.
Administered by the CDFI Fund of the U.S. Department of the Treasury, the NMTC Program attracts capital to low income communities by providing private investors with a federal tax credit for facilitating investments made in businesses or economic development projects located in some of the most distressed communities in the nation – census tracts where the individual poverty rate is at least 20% or where median family income does not exceed 80% of the area median.
For a short video on how the NMTC Program works, click here.
Since 2010 AltCap has provided NMTC facilitated financing for $150 million in investments by family-owned small businesses to social service nonprofits in low- to moderate-income communities throughout Kansas City, Missouri. Our NMTC portfolio includes a LEED Platinum manufacturing facility (the 7th in the nation) to a repurposed church and school.
Currently AltCap's NMTC facilitated financing is primarily available for operating businesses as well as real estate entities that are considering making a significant investment in AltCap's service area. Job-creating capital investments by a business (e.g. facility expansion or equipment/machinery purchase) or catalytic commercial, industrial, mixed-use, or community development projects representing at least $5-6 million in investment are eligible for nontraditional, flexible financing through the NMTC Program.
For more information about AltCap's NMTC Program, contact Ruben Alonso at (816) 216-1851, ext. 1 or firstname.lastname@example.org