The Texas New Market Tax Credit (NMTC) Program

New Market Tax Credits are available in Gainesville. Gateway Industrial Park and Historic Downtown Gainesville are located within the NMTC zone. This designation is re-evaluated every 5 years so now is the time to bring your project to Gainesville. 

NMTC is a federal tax incentive designed to increase the flow of private sector capital to rural communities overlooked by conventional lenders and investors. Most NMTC projects include the development or expansion of infrastructure for the growing business or operation, thereby creating long-term assets within those communities.

Important components of the New Market Tax Credits:

• Requires a minimum investment of $5 million.
• Provides up to a 39% Tax Credit over 7 years.
• Project must have strong funding for costs not covered by NMTC.
• Project costs eligible include equipment, site prep, land acquisition, rehabilitation, soft costs such as closings costs, tenant improvements. (Working capital reserves permitted depending on circumstances.)

Tax Credit Investors add a component that makes the monies available to the project upfront. They make an equity contribution to the project at a discounted rate in exchange for tax credits. Typically the project may realize the value of 33 percent Tax Credit up front where the Tax Credit Investor realizes 39 percent over 7 years, 5 percent the first three years and 6 percent the remaining 4 years – a win-win.

Contact the Gainesville Economic Development Corporation for details about how NMTC can work for your company!

940-665-5241
William@gainesvilletxedc.com