New Markets Tax Credits

Reznick Group has been active in the New Markets Tax Credit (NMTC) industry since the program’s inception in December 2000. Throughout the development phase of the program, we worked closely with key participants, including the U.S. Treasury’s Community Development Financial Institution (CDFI) Fund, the IRS, the NMTC Coalition, community development entities (CDEs) and others. As a result, we have become recognized leaders in providing assurance, tax, transactional and consulting services for the New Markets Tax Credit program.

Because of our national reputation in various tax credit industries and on tax policy matters, we are ahead of the curve in understanding the complexities of the program, investor issues, market concerns and programmatic and income tax regulations.

Services

  • CDE audits, compliance attestation reports and preparation of income tax returns
  • Assistance in preparing CDE and NMTC applications
  • Financial modeling and structuring of NMTC transactions
  • Strategic planning and assessments to determine how an organization can participate in, and benefit from, the NMTC program 
  • Evaluation and development of NMTC debt and equity products 
  • Design of internal NMTC programmatic and tax compliance programs 
  • Onsite NMTC training programs 
  • Turnkey compliance services
  • Development of investor presentations and participation in such presentations 
  • Independent attestation/agreed-upon procedures, reports on qualifications of investments and ongoing NMTC compliance 
  • Financial forecasts 
  • Preparation of CDE internal budgets to assess and manage the costs and profitability of participating in the program 
  • The design of investor reporting systems and preparation of investor benchmarking reports 
  • Preparation of reasonable expectation white papers 
  • The review and editing of operating, guarantee, investment, loan and other associated transactional agreements 
  • Investor due-diligence analysis
  • Design of CDE accounting systems and procedures