Welcome to the incentis group Newsletter, the publication designed to keep you, our valued business partners, in-the-know on developments in the incentives and credits arena and incentis group projects and services and aware of changes in the economic development industry that may benefit your projects.  

We hope you find this issue's content provides knowlegdge and prospective related to economic development and related incentives which you find this issue useful in your project planning.  We invite you to visit www.IncentisGroup.com for additional information.

Federal New Markets Tax Credits Extended for Another Round

On December 19, 2014, President Obama signed  "The Tax Increase Prevention Act of 2014" (HR 5571) which extended, through the end of 2014, most temporary tax provisions which had expired at the end of 2013.  Included in this Act was the extension of the federal New Markets Tax Credit (NMTC) Program.  Community Development Entities (CDEs) have already applied to the U.S. Department of Treasury for the 2014 round of NMTC allocations.  $3.5 billion in allocations is expected to be awarded in late spring, 2015 for the 2014 round.

The NMTC Program was established by Congress in 2000 to encourage investments in low income communities.  The use of the NMTC Program can reduce the effective cost of an investment in a new facility, upgrade to an existing facility, or new capital equipment by as much as 20%.  We've identified numerous manufacturing, distribution, and retail facilities located in low income census tracts, along with many central business districts and other areas prime for development.  This can qualify investments in these facilities for the benefits of the NMTC Program.  Low-income communities located in non-metropolitan/rural census tracts are also eligible for the NMTC Program.

Leveraging our network of community development entities (CDEs) and investors, incentis group has closed on more than $150 million in NMTC transactions in the past 3 years.  In 2013 alone, we secured more than $80 million in NMTC allocations for 6 projects located in 6 states resulting in the following benefits for clients:

• A  $25.5 million NMTC transaction for a distribution center project in the Southeast yielded pre-tax cash benefits in excess of $6 million.
• A $13 million project in the Midwest received pre-tax cash benefits of $2,750,000 from NMTC.
• A $10 million distribution center project in the Midwest received pre-tax cash benefits in excess of $2 million from NMTC.

We provide full service consultancy for your project, from securing allocations and equity investments, through closing the NMTC transaction and providing NMTC compliance services through the 7-year compliance period.

If you are considering a project, please contact Marty Flynn, (mflynn@incentisgroup.com) (440) 465-0994 to see if your proposed project could benefit from the New Markets Tax Credits Program.