At the annual Novogradac Fall New Markets Tax Credit (NMTC) Conference, Cherry Bekaert’s Laurel Tinsley participated in the Preparing for a Record Allocation Round panel. Tinsley provided key predictions and strategic advice for stakeholders preparing for the $10 billion calendar year (CY) 2024 – 2025 new markets tax credit allocation round.
The upcoming CY 2024 – 2025 double round of NMTC allocation is poised to distribute $10 billion in 2025 and is attracting significant interest. Drawing lessons from the 2015 – 2016 double round, panelists expect a rise in applicants, winners and award sizes, with familiar community development entities (CDEs) likely to reapply. They anticipate that the increased funding could widen the scoring range, allowing more participants to succeed.
Strategic advice emphasized preparation and readiness across stakeholders. CDEs were advised to maintain a methodical focus on long-term goals, while qualified active low-income community businesses (QALICBs) should be project-ready, given the uncertainty of future rounds. Investors are encouraged to leverage the increased tax credit volume and align with Community Reinvestment Act (CRA) targets. Panelists strongly advocated for making the NMTC program permanent, citing its unparalleled contributions to community development and viewing the double round as a chance to showcase its value and secure its future.
To explore the insights and strategic advice shared in this Novogradac article, download the full PDF here.
