Neil Bhagat Law Blog

Recently, Bloomberg Markets Magazine published an article criticizing the use of New Market Tax Credits (NMTCs) to finance commercial real estate developments.  In particular, the article focused on the renovation of the Blackstone Hotel in downtown Chicago, which used $15.6 million in NMTCs.  While the article largely questions specific NMTC... Read More

New Market Tax Credits (NMTCs) are an increasingly utilized strategy for encouraging economic development in struggling areas.  At its core, the program allows investors to receive a tax credit in return for making qualified equity investments in groups designated as Community Development Entities (CDEs).  The CDEs must then use these investments in low-income communities that are located throughout the United States.  For organizations that need access to capital, NMTCs are a... Read More