New Markets Tax Credits

The New Markets Tax Credit program is administered by the CDFI Fund of the U.S. Department of the Treasury and offers a 39% federal tax credit, spread over 7 years, for investments in qualified businesses.  Please contact RDA or visit the CDFI Fund's web site, www.CDFIFund.gov for more details.  RDA has helped create several federally-certified Community Development Entities (CDEs) to seek tax credits under the NMTC program.  CDEs are charged with using the tax credits to attract capital for new or expanding businesses in economically distressed communities.  RDA has been highly successful in assisting CDEs garner NMTC allocations, over $400 million to date.

RDA's wealth of experience in rural business development has made it the preeminent service provider for seeking and utilizing rural allocations of NMTCs.  Our services include the following:

• Strategic and business planning for existing or prospective CDEs;

• Drafting applications for CDE certification;

• Drafting applications for NMTC allocations;

• Identifying and evaluating businesses that may be eligible to utilize NMTCs; and

• Facilitating negotiations among the parties participating in an NMTC transaction.

The following are examples of business initiatives RDA has assisted utilizing NMTCs:

• The reconstruction of a large-scale dairy processing plant;

• The acquisition and revitalization of commercial forestry operations;

• The construction and expansion of cooperatively owned grain storage and handling facilities;

• The expansion of a polyol production line at a corn processing plant;

• The conversion of a coal-fired power plant to a biomass-fired power plant; and

• The construction of a rural telecom business.

Examples