New Markets Tax Credits (NMTCs)

At KCD Legal Partners, expertise in New Markets Tax Credits (NMTCs) positions the firm as a national leader, having successfully closed hundreds of federal and state NMTC transactions across diverse sectors and geographies. These transactions are at the heart of efforts to drive meaningful economic growth in underserved communities.

Comprehensive Transaction Support

KCD Legal Partners works with a broad spectrum of stakeholders in NMTC transactions, including:

  • Tax Credit Investors and Syndicators: Structuring and negotiating agreements to optimize returns and ensure compliance.

  • Community Development Entities (CDEs): Providing regulatory guidance, assisting with CDE certification, and advising on allocation applications and agreements.

  • Leverage and Source Lenders: Structuring innovative financing models to maximize the impact of leverage loans.

  • Qualified Active Low-Income Community Businesses (QALICBs): Guiding businesses through eligibility requirements and financing processes.

Diverse Project Expertise

From large-scale real estate developments to operational financing for small businesses, KCD Legal Partners has supported projects including:

  • Construction and Rehabilitation: Transformative real estate projects such as community centers, healthcare facilities, and educational institutions.

  • Innovative Financing: Supporting small loan funds and operational business financing to create sustainable economic opportunities.

Integrated Incentive Structures

Specializing in combining federal NMTCs with additional incentive programs, KCD Legal Partners ensures clients achieve maximum financial benefit. The firm’s experience includes integrating NMTCs with:

  •  State NMTCs

  •  Historic Rehabilitation Tax Credits

  •  Renewable Energy Tax Credits

  •  Property Assessed Clean Energy (PACE) Financing

  •  Brownfield Credits

  •  Opportunity Zone Investments

  •  Bond Financing

This expertise enables clients to leverage multiple incentives seamlessly, creating financially robust and impactful projects.

Lifecycle Guidance

KCD Legal Partners provides end-to-end support throughout the NMTC lifecycle, including:

  •  Post-Closing Asset Management: Addressing compliance, reporting, and monitoring requirements to maintain program eligibility.

  •  Debt and Equity Restructuring: Assisting clients with complex financial restructurings to stabilize or enhance project performance.

  •  Default and Workout Scenarios: Navigating challenging situations to protect client investments and ensure optimal outcomes.

Regulatory Expertise

The firm’s deep understanding of NMTC regulations ensures that all transactions comply with program requirements. Services include:

  •  Ongoing compliance monitoring and adherence to allocation agreements.

  •  Strategic advice to CDE clients to maximize program benefits while mitigating risks.

Driving Impact and Innovation

KCD Legal Partners combines unparalleled technical knowledge with a commitment to innovation, empowering clients to use NMTCs as a tool for transformative community development. By ensuring every project is structured for success, the firm helps unlock economic opportunities that create lasting change in underserved communities.