If your organization is planning a facility expansion, job-creating development or community-serving infrastructure project in a low-income area, you may want to consider public-private finance as a potential funding tool.
The New Markets Tax Credit (NMTC) program has been transforming communities since 2000, but 2025 presents a rare opportunity: a $10 billion allocation round is being awarded this fall, and shovel-ready projects may qualify for millions in low-cost, flexible funding.
“Too Good to Be True”? We Hear That Often!
You’re not alone if you think the NMTC program sounds too generous to be real. A 39% federal tax credit? Below-market loans? Flexible use of funds? It raises eyebrows.
But it’s 100% real. Since its inception, the NMTC program has:
- Delivered more than $143 billion in financing to more than 8,900 projects1
- Supported more than 1.25 million jobs
- Financed 2,000 manufacturing and business expansions
- Financed more than 3,800 health centers, charter schools, daycare centers, apprenticeship programs and other service providers
The program works! And here’s something many companies and organizations don’t realize: NMTC financing can also be used for working capital (such as inventory, salaries, training costs and other operational expenses), making it an ideal solution for nonprofit and community-based businesses that need more than just a building.
What’s Happening?
- The 2024 and 2025 NMTC allocation rounds have been combined into a $10 billion “megaround,” with award announcements expected in fall 2025.
- 2023 allocations are still being deployed, and community development entities (CDEs) are actively looking for high-impact, ready-to-go projects.
- CDEs are building project pipelines now to be prepared to deploy quickly when new allocation awards are made.
What to Do Now
If you’re a company, an organization, a developer and/or an operator, do these five things now:
- Check if your project is eligible – The first step is confirming that your site is in a qualified census tract using the latest data.
- Tell your story – How will your project benefit the community? Create jobs? Improve access to services? These answers are critical to NMTC success.
- Highlight your working capital needs – Don’t just think about your building or equipment; include staffing, launch costs and operational runway. NMTC can often help bridge those costs too.
- Show your readiness – CDEs prioritize well-organized, near-term projects. You don’t need to be under construction, but you do need to show you’re ready.
- Partner with NMTC-experienced professionals – This isn’t traditional bank financing. Experienced advisors and CDEs can help structure your project in a favorable manner and manage the compliance and reporting.
What Types of Projects Qualify?
Below are several examples of projects we’re currently working on at Creative Planning, helping our clients maximize their return on investment:
- A nonprofit organization dedicated to providing shelter, support and resources to young, pregnant and parenting mothers and their children
- A crisis intervention and youth and family services organization
- A community theatre that’s renovating its historic building and expanding its educational programs with a focus on mental health and well-being
- A fourth-generation family-owned manufacturer expanding its production lines
- A family-owned bakery and café expanding outside its current footprint to a new city
- A mixed-use project renovating a historic building and providing affordable housing, workforce development services and small business support
Each project has both capital needs and working capital components, making the NMTC program an especially strategic fit.
In Summary
The 2025 allocation round isn’t just another NMTC cycle; it’s the largest in the program’s history. With CDEs actively deploying capital now and preparing for the $10 billion megaround, there’s a unique window for high-impact, well-prepared projects to secure transformational funding.
It’s not too good to be true. It’s just too good to ignore.
If your project needs a strategic partner to bridge capital gaps, let’s set up a time to talk! At Creative Planning, we assist businesses in exploring available programs, aiming to align funding solutions with community goals and achieve significant financial and social returns. Schedule a call today.
About the Authors
Myriam Simmons is the Director of Credits & Incentives in the Specialty Tax Service practice at Creative Planning. She leads the firm’s C&I practice and advises healthcare systems, nonprofits and developers on NMTC, TIF, grants and state incentive strategies.
Reece Macdonald is a Senior Manager in Creative Planning’s Specialty Tax Services practice at Creative Planning, specializing in public/alternative financing, public-private partnerships, economic development solutions, business incentives and NMTC advisory services.
