New Markets Tax Credits

McGuireWoods represents governmental, nonprofit and other entities using NMTCs to promote the acquisition, development, construction and expansion of facilities in qualified low-income communities. Our team assists borrowers in creating or identifying affiliated qualified active low-income community businesses (QALICBs) to conduct financings and to represent them throughout the process, including with in-depth tax opinions.

Regulations governing the NMTC program — administered by the U.S. Treasury’s Community Development Financial Institutions Fund and the Internal Revenue Service — can lay traps for the unwary, so we guide clients through the process at the federal and state levels.

The firm provides the necessary federal and state tax and corporate opinions to community development entities (CDEs), investors and lenders regarding the qualified nature of investments in QALICBs. McGuireWoods helps CDEs obtain allocations of NMTCs; represents QALICBs in state and federal new markets transactions; counsels leverage lenders; assists developers with obtaining private letter rulings from the IRS; aids the creation and financing of CDEs; and advises on projects qualified for NMTCs, including the development of charter schools, mixed-use commercial spaces, movie theaters, concert venues and more.

We provide tax advice on all aspects of NMTC projects, including those related to bond financing, partnership structuring and qualification requirements. The team also provides tax advice regarding NMTC projects, including bond financing, partnership structuring and qualification requirements.