Overview
The NMTC program provides a federal tax credit (via the U.S. Treasury’s Community Development Financial Institutions Fund) that enables investors to provide capital for projects in low-income communities. These credits help reduce the cost of capital, making large impact projects feasible that otherwise couldn’t attract sufficient financing.
Heartland Renaissance Fund (HRF) offers flexible, below-market financing, structured to maximize community impact.
Project Requirements
- Developers, nonprofits, or public/private partnerships focused on catalytic economic growth (industrial, community facilities, health care, workforce development, education, etc.)
- Organizations that need large scale investments of $5M+ and are seeking both financing and advisory support to structure projects, ensure compliance, timelines, etc.
- Projects that can demonstrate job creation or retention, community benefits, or other measurable impacts
Past NMTC Projects
Sovereign Pipe
Purchase of equipment for a tribal-owned manufacturer of high-density polyethylene pipes in rural Shawnee, Oklahoma. The project is in the Iron Horse Industrial Park which is owned by the Citizen Potawatomi Nation. Iron Horse was built to leverage the tribe’s land holdings and to diversify its revenue streams to support tribal initiatives. Created 40 new quality and accessible jobs, which are primarily held by tribal members.
Biewer Lumber
Expansion of a state-of-the-art southern yellow pine sawmill in rural Winona, MS that produces over 50 million board feet annually. The family-owned company created 171 new accessible and quality jobs.
Safe Foods
Rehab and purchase of equipment for a manufacturer of food safety applications. Located in the worst census tract in Arkansas, the 1968 facility was a brownfield that was remediated to LEED Silver standards and was the first major investment in the North Little Rock Industrial park in 15+ years. Created 70 new quality and accessible jobs.
Learn About New Market Tax Credits
How do New Market Tax Credits work?
NMTC Investors receive a 39% tax credit over seven years (5% annually for the first three years, 6% for the remaining four) on their investment in a CDE. The CDE uses this capital to provide favorable financing to businesses and projects in qualified low-income communities.
Does my project qualify?
You’ll need to: operate in a low-income community; have quantifiable community impact (jobs, services, etc.); and align with eligible project types.
How much funding can be secured through NMTCs?
It depends on project size, location, impact, and cost structure. Projects typically receive $5 – 15 million of allocation.
What’s the timeline from application to funding?
The process includes preparing the project structure & application:
- ACC's internal review & advisory
- CDFI Fund award cycles
- Investor matching & closing
- Closing process typically takes three months, depending on the complexity of the project
- Ongoing compliance then continues for 7 years
New Market Tax Credit’s Essential Program Details
Are NMTCs Right for My Project?
NMTC typically works best for projects that:
- Are located in an eligible low-income census tract
- Have a total cost of $5M+
- Can demonstrate significant community benefits to low-income communities and low-income people (jobs, services, etc.)
What types of projects qualify for NMTC financing?
Qualifying projects include:
- Healthcare facilities and community clinics
- Manufacturing and industrial facilities
- Grocery stores and food distribution centers
- Educational and workforce development facilities
- Community facilities and mixed-use developments
NMTCs can support new construction, renovation, equipment purchases, and facility expansions.
What documentation will I need to provide to apply?
Key documentation typically includes:
- Business plan and project description
- Financial projections
- Evidence of site control
- Information on job creation and other community benefits
- Sources and uses of funds
- Information on project principals
Heartland Renaissance Fund is Experienced
Heartland Renaissance Fund provides below-market financing in underserved geographies. Since 2003, we have managed $425 million in federal allocations and $20 million of state credits that have been invested in over 50 projects across our service area.
Backed by a proven track record and a commitment to measurable impact, our experienced team has over 85 years of combined experience with more than $1.1B in transactions structured.
Below-market rate financing tailored to maximize community benefit and viability.
NMTC Advisory Services
HRF’s team members are highly experienced in structuring investment capital for innovative, early stage, and high growth companies in a variety of industries.
- Tax Credit Syndication / Tax Credit Finance
- Public-Private Partnership Opportunities
- Alternative Financing Solution
Our NMTC Team
You’re not just getting capital; you’re getting a partner in business. Our team brings in decades of experience, deep understanding of project finance and community development.
Leslie Lane
President
Becka Webb
Vice President
Micah Brackett
Finance Compliance Analyst
Linda Abrams
Executive Assistant