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public finance

Practices

New Markets Tax Credit Transactions

We have participated in numerous New Markets Tax Credit (NMTC) transactions across the country representing the borrowers, who are the equity recipients and must be qualified active low-income community businesses (QALICBs), have rendered the required tax opinions on behalf of the QALICBs and have assisted the QALICBs when the NMTC transactions are unwound.

We have also represented banks, community lenders and other parties acting as the direct or indirect leverage lenders in these transactions. We have the capability to incorporate other financing techniques, including tax-exempt bonds, tax increment financings and governmental loans, in NMTC transactions. We also have experience with state NMTC programs and have guided our QALICB clients through state determination approval processes.  

  • Represented an Ohio regional bank providing construction and permanent loan financing for a multi-use project, including housing and commercial space supported by NMTCs and Historic Tax Credits.
  • Represented a QALICB client in connection with a NMTC financing for an artisanal cheese production facility in Wisconsin for which three national community development entities allocated tax credits.
  • Represented a QALICB client relating in connection with a federal and state NMTC financing for a rehabilitation of a downtown Cleveland, Ohio office tower into a corporate headquarters building for a national insurance company, including a related tax increment financing.
  • Represented a QALICB client in connection with a NMTC financing for the rehabilitation of a downtown Dayton, Ohio office tower for a large health care consortium.
  • Represented a QALICB client in connection with a NMTC financing for an advocacy center for abused children in Dayton, Ohio.
  • Represented manufacturers of PHAs (polyhydroxyalkanoates) as the QALICBs in connection with NMTC financings for multiple manufacturing facilities in Georgia and Kentucky.
  • Represented a community lender client providing a source of funds for a leverage lender to provide a leverage loan in connection with a NMTC financing for a urban in-fill mixed use real estate development in Cleveland, Ohio, including a refinancing of the NMTC loans during the tax credit compliance period.
  • Represented a QALICB client in connection with the sale of its NMTC financed medical office building in Washington, D.C. during the NMTC compliance period.
  • Counsel to borrower in connection with a New Markets Tax Credit financing of a $20 million construction and installation of equipment in a manufacturing facility in Bainbridge, Georgia, Georgia.
  • Counsel to borrower in connection with a New Markets Tax Credit financing for a $13 million construction and installation of equipment in a manufacturing facility in in Bennettsville, South Carolina.
  • Counsel to lender in connection with a New Markets Tax Credit financing of a $15 million renovation of a children’s museum in Pittsburg, Pennsylvania
  • Counsel to borrower in connection with a New Markets Tax Credit Financing for $12 million construction of manufacturing facility in Huntsville, Alabama.
  • Counsel to borrower in connection with a New Markets Tax Credit financing for $12 million construction of a manufacturing facility in Alpena, Michigan.
  • Counsel to borrower in connection with a New Markets Tax Credit financing of a $10 million construction and installation of equipment in a manufacturing facility in Winchester, Kentucky.
  • Counsel to borrower in connection with a New Markets Tax Credit financing for a $10 million youth club in Augusta, Georgia.
  • Counsel to borrower in connection with a New Markets Tax Credit financing of a $7.7 million construction and installation of equipment in a manufacturing facility in Athens, Georgia.
  • Represented a lender in a $35,000,000 construction and permanent loan financing for a multi-use project including housing and commercial space supported by New Markets Tax Credits and Historic Tax Credits.
  • Counseled a borrower on a New Markets Tax Credit financing for a $50 million artisan cheese production facility for which three national community development entities allocated tax credits.
  • Counseled a borrower relating to a New Markets Tax Credit financing for a $25 million rehabilitation of an office tower into a corporate headquarters building for a national insurance company. [This financing also involved job creation tax credits from the state of Ohio, loans from Cuyahoga County, Ohio, and the state of Ohio, which were utilized to leverage the New Markets Tax Credits, and a tax increment financing from the city of Cleveland.]
  • Counseled a borrower regarding a New Markets Tax Credit financing for a $20 million rehabilitation of an office tower for a large health care consortium.
  • Counseled a borrower on a New Market Tax Credit financing for a $4 million advocacy center for abused children.
  • Represented borrowers, who are the equity recipients, and other parties to New Markets Tax Credit transactions.
  • Provided tax counsel to five QALICBs on structuring, negotiating tax provisions, and offered tax opinions on transactions involving office buildings, manufacturing facilities, a hospital extension, a university related office, retail space, and residential facility with four major banks as investors.
  • Represented a landlord regarding a $5 million new market tax credit loan and related 40,000 square foot office lease.