New Markets Tax Credit Program
In addition to lending its own capital, Capital Fund also provides New Markets Tax Credit (NMTC) financing to qualified health centers. Leveraging tax credit investments, grants, and loans, Capital Fund utilizes this federal tax credit program to provide attractive financing for health center projects that provide multiple positive impacts for their low-income communities.
- National NMTC Program: Capital Fund received an allocation of $25 million in tax credits in 2015 to finance high-impact projects for health centers nationally. We expect to utilize this allocation for four projects by year-end 2016. While all of our allocation is currently committed to projects, we hope to receive subsequent awards. Please contact us to let us know about your project, so that we may be in contact with you if we have allocation available in the future.
- GO Zone NMTC Program: On behalf of Capital Link, Capital Fund manages a $15 million NMTC Program for health centers located in the Gulf Opportunity Zone (GO Zone) — the areas of Louisiana, Mississippi, and Alabama that were hit hardest by Hurricane Katrina. Tax credits associated with this program have been fully deployed so additional loans through this program are unavailable at this time.
- Facilitating Tax Credit Transactions for Health Centers: Due to complex tax rules and structuring requirements for New Markets and Historic Tax Credit transactions, health centers sometimes need a “friendly partner” to participate with them in establishing an LLC to facilitate their access to favorable tax credit financing. Capital Fund can participate with health centers in such LLCs, thus enabling health centers to access federal and state NMTCs and federal and state Historic Tax Credits.