The New Markets Tax Credit (NMTC) program is designed to provide a tax incentive for investors to make capital investments into qualified low income and distressed communities. The incentive is equal to 39% of the equity invested into Community Development Entities (CDEs), which then in turn, use these funds to make capital investments into Qualified Active Low Income Businesses (QALICB). When twinned with other incentives like the Renewable Energy Tax Credits and Historic Tax Credits, it becomes an even more powerful economic development tool for these communities.

Cohen & Company was an early pioneer in the New Markets Tax Credit (NMTC) Program. Working jointly with our affiliated company, Ariel Ventures, we formed a CDE with the Regional Port Authority, and were successful in obtaining a $47 million NMTC allocation in 2003 and a $30 million NMTC allocation in 2008. Our 2003 NMTC allocation was instrumental in assisting the City of Cleveland and the Port in financing a $120 million project, transforming a blighted steel processing center into a thriving retail development, creating over 1,800 local jobs. Our ongoing participation in this and other NMTC projects has led us to form an exclusive relationship with Ariel Ventures to provide comprehensive NMTC services nationally. In addition to working closely with CDEs, Investors and QALICBs, we actively interact with other key NMTC participants including the U.S. Treasury’s Community Development Financial Institution (CDFI) Fund, the IRS, Office of Tax Policy and the NMTC Coalition. We pride ourselves on our in depth understanding of the complexities of the NMTC program including, financing, compliance, investor, CDE and QALICB issues. Together with Ariel Ventures, we provide the following comprehensive NMTC consulting services.

SERVICES INCLUDE

• Financial modeling, forecasts and transaction structuring for QALICB, CDE and Investment Fund
• CDE and QALICB financial statement audits, reviews and compilations
• Tax planning and return preparation
• AUP for Compliance reporting and QALICB qualification
• IRS, CDFI and Investor compliance and reporting services
• NMTC compliance, reporting and CDE management software services
• Strategic planning and analysis in assisting an organization in determining how it can participate in the NMTC program
• CDE certification and NMTC allocation applications
• Loan servicing, Asset management and Accounting services
• Syndicating tax credit equity and identifying investors
• Project management and finance services
• NMTC training programs, onsite and online
• Design and implementation of CDE accounting and budgeting systems and procedures

HIRE A PROFESSIONAL TEAM
For more information on the NMTC program or services please contact:

Christopher J. Madison at 216-774-1116 cmadison@cohencpa.com Dave Sobochan at 216-774-1163 dsobochan@cohencpa.com Anthony Bakale at 216-774-1147 abakale@cohencpa.com Radhika Reddy at 216-344-9441 rr@arielventures.com Irene Zawadiwsky at 216-344-9447 Lynn Selzer at 216-344-9442