FORVIS, a financial services company serving the construction sector, has launched the New Markets Tax Credit Forecasting Tool for businesses. This new software is designed to minimize New Markets Tax Credit (NMTC) transaction times.
The New Markets Tax Credit Forecasting Tool can generate a compiled transaction model in real time, potentially shaving weeks off a closing schedule and reducing overall transaction fees. The tool will not only help clients, but the communities in which they invest, by supporting the due diligence and approval process.
“Upon joining FORVIS, it became immediately clear to me that our clients are looking for ways to capture and deliver outcomes that support people and the communities they call home,” said Mike Roney from FORVIS. “The federal NMTC Program is perfectly aligned with many of the industries FORVIS serves. The New Markets Tax Credits Forecasting Tool has the ability to make any NMTC transaction more efficient and effective. Our tool can serve as a bridge that closes the gap between dream and reality resulting in significant impact to everyone involved."
Through the NMTC Program, tax credit authority is granted to Community Development Entities (CDEs) through an application process. CDEs are financial intermediaries through which private capital flows from an investor to a qualified business located in a low-income community. CDEs use their authority to offer tax credits to investors in exchange for equity in the CDE. Using the capital from these equity investments, CDEs can make loans and investments to businesses operating in low-income communities on potentially better rates and terms and more flexible features than the market.
“I have been contacted by hospitals, schools, foundations, and manufacturers looking to develop in economically distressed areas,” said Wes Ernst, director at FORVIS. “The demand for NMTC funding is real, and everyone is excited for someone like us to come in and dramatically accelerate the pace at which these transactions can flow. By doing so, we will become a critical partner in ensuring NMTC capital ends up in the areas which need it most.”
