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OPM Capital

New Markets Tax Credits (NMTC)

39% tax-credit-driven equity for projects in low-income census tracts.

Overview

NMTC provides a 39% federal tax credit (claimed over 7 years) to investors financing projects in qualifying low-income communities via Community Development Entities (CDEs). In practice, this delivers 20–25 cents of net equity per project dollar. Stackable with HTC, LIHTC, and Opportunity Zones. Complex — requires a CDE allocation and a QALICB borrower — but transformative for community-scale deals ($5M–$50M).

Best fit
Adaptive-reuse developersCommunity-scale operatorsGrocery/healthcare/education projects in LIC tracts
Estimated impact
20–25% subsidized equity + stackable with HTC/LIHTC/OZ

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