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  1. CohnReznick: Advisory, Assurance, Tax Firm
  2. Services
  3. Tax
  4. Tax Credits
  5. New Markets Tax Credits
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New Markets Tax Credits

New Markets Tax Credits (NMTC) provide incentives for bringing jobs, businesses, and economic growth to distressed communities. The NMTC Program offers growth-oriented investors a cost effective method to enter underserved markets, even though the process — from certification through closing — is complicated. As a nationally renowned NMTC advisor and pioneer, we are the go-to firm for investors, developers, and community oriented organizations. Our experts guide you through the entire lifecycle of your program. We prepare and submit Community Development Entity (CDE) certifications, file CDFI Fund data, conduct annual audits and reporting, address state and local tax issues, and provide transaction advisory and compilation services for qualified businesses in low-income communities.

COMPREHENSIVE SERVICE

CohnReznick provides comprehensive assurance, tax, transactional, and consulting services to investors, CDEs, and end-users of NMTC capital. Involved in the program since its inception, we also serve as NMTC advocates for our clients, before Congress, and in support of industry participants and coalitions.

MAINTAIN COMPLIANCE

As a federal program, the NMTC Program is tightly controlled, and CDEs are faced with numerous regulatory and programmatic rules. Experts in the requirements of the CDFI Fund and the IRS, we can help you maintain full program compliance with your allocation agreement, Internal Revenue Code Section 45D, and in submitting all required documentation to both agencies.

MINIMIZE YOUR NMTC TRANSACTION TAX OBLIGATIONS

We mitigate the impact of various federal and state taxes in your NMTC liquidation transaction. Specifically, we address original issue discount regulations, fee allocations with regard to deductibility timing, the impact of fees on recipients, QEI/investor redemption calculations under the Section 45D Safe Harbor provision, and imputed interest calculations, among other considerations.

SERVING YOUR NMTC PROGRAM NEEDS – FROM CERTIFICATION TO CLOSING

CohnReznick is your partner through the entire life cycle of your participation in the NMTC Program — from your certification as a CDE through the monetization of your credits.

Our full range of NMTC services

Allocation Application consulting

  • Allocation strategy and investment plan focused on weighting factors impacting scoring of application
  • Design of flexible loan products — developing underwriting criteria, consulting on loan application process

Audit, financial, and compliance support

  • Agreed Upon Procedures compliance reports
  • Annual CDE and NMTC Investment Fund audits
  • Financial modeling of NMTC transactions
  • Fund attestation, tax, and compliance
  • Independent compliance program reviews
  • Loan and investment structuring
  • Federal, state, and local tax return preparation

Transaction advisory

  • Financial structuring and modeling to address loan pools/funds, investor yields, net income/loss pass through, cash flows, dissemination of fees, residual returns and tax impact to beneficiaries and borrowers
  • Tax planning and compliance
  • Transaction structuring based on economic/quantitative/programmatic factors

Ongoing training and guidance

  • In-house compliance program creation with customized onsite training
  • Community Impact Information System (CIIS) reporting and documentation Documentation for maintenance of CDE status
  • Semi-annual testing procedures
  • Investment/QLICI/QALICB due diligence and documentation
  • Establishing procedures for data collection and filing IRS Form 8874A

Related services

  • Tax Credits
  • Real Estate
Richard T. Davies
CPA, Partner, Project Finance & Consulting
View full biography
Contact Dick
Kayla Gross
CPA, Principal, Project Finance & Consulting
View full biography
Contact Kayla
May. 15, 2023 - May. 17, 2023
CohnReznick's Annual New Markets Tax Credit Summit
Learn more

Qualified Zone Map: 

Visit CohnReznick's Opportunity Zone Mapping Tool

View the NMTC/OZ Map

New Markets Tax Credit Case Study:

Remington Community Development

Play video

Business of Baseball

Community Development

Learn more
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Consumer & Industrial
  • Hospitality
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  • Consumer
Financial Sponsors & Financial Services
  • Broker Dealers
  • Independent Sponsors
  • Mortgage Lenders
  • Real Estate Funds
  • Family Offices
  • Hedge Funds
  • Private Equity
  • Small Business Investment Companies (SBICs)
  • Special Purpose Acquisition Companies (SPACs) Services
  • Venture Capital
Life Sciences & Healthcare
  • Life Sciences
  • Healthcare
Public Sector
  • Government Contracting
  • Government
  • Not-for-Profit & Education
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  • Affordable Housing
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  • Construction
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  • Tax Credits
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Private Clients
  • Film & Entertainment
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Cannabis
Services
Advisory
  • Accounting Advisory
  • Financial Modeling and Decision Analytics
  • Performance Improvement
  • CFO Advisory
  • Cybersecurity, Technology Risk, Privacy
  • Emergency Management
  • Emergency Rental Assistance Program
  • Global Consulting Solutions
  • Infrastructure Advisory
  • Project Finance and Consulting
  • Real Estate Advisory
  • Restructuring & Dispute Resolution
  • Risk Advisory
  • Technology+
  • Transactions
  • Valuation
Accounting & Assurance
  • Accounting Advisory
  • Accounting Services
  • Attest & Audit
  • Employee Benefit Plans
  • Lease Accounting
  • Paycheck Protection Program (PPP) Loan Forgiveness Assistance
Managed Services & Outsourcing
  • Data & Technology Solutions
  • Managed and Outsourced Services to Administer and Safeguard Public Funds’
  • Mitigate Enterprise Risk & Achieve Compliance
  • Prepare for the Future of Your Business
  • Managed and Outsourced Tax Concerns
  • Transaction Processing, Financial Close, & Reporting
Tax
  • Federal Tax
  • International Tax
  • Exempt Organizations Tax Services
  • Private Clients
  • SBA Disaster Loan Assistance
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  • Tax Credits
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  • Asset Management & Insurance
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Insights
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