One of the first questions we often hear from prospective borrowers is “Can I use New Markets Tax Credits for my project?” The NMTC program is a very powerful incentive to attract private capital for the right projects. To understand if the NMTC incentive is a good fit for your project one of the first questions you should ask is: “Where is my project going to be located?” The NMTC incentive can be used in areas designated by the federal government as qualified census tracts. To determine if your site may qualify for this incentive you can use an online mapping tool such as one provided by Novogradac & Company which is located at – http://www.novoco.com/new_markets/resources/ct/ If you go to that website you can enter the projects address into the box immediately to the left of the search button. You will then click the search button and a map will be displayed which pinpoints your projects address. If you see the address is located within an area shaded in either red or yellow then the site maybe qualified for NMTC financing. If your proposed location is within an area that is not shaded in either of the above colors your location is most likely not within an area designated as qualified census tract. For a general overview of qualified census tracts within Arkansas please click here.
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