New Markets Tax Credits

Bryant Miller Olive has based its practice upon representing clients in complex financial transactions since 1973, offering a multi-disciplinary range of legal services. Our practice groups are focused in Public Finance, Real Estate, Tax, State and Local Government, Public Private Partnerships and other related practice areas. Serving as special tax counsel in New Markets Tax Credits (NMTC) transactions is a natural outgrowth of BMO’s foundational roots, closing complex transactions as bond counsel in public finance transactions and draws on BMO’s varied expertise.  BMO has dedicated the same rigor it became known for in public finance transactions to representing entities in a variety of roles in NMTC financings and other tax credit incentive transactions.

In the past several years, BMO has been the only Florida-based law firm actively involved in representing “Qualified Active Low Income Community Businesses” (borrowers) and leverage lenders in NMTC transactions, and as bond counsel in some of the combined tax-exempt bond and NMTC transactions completed. In 2012, BMO served as special tax counsel on a $10 million loan utilizing State of Florida NMTC allocations for the Tampa Bay Lightning to finance a portion of the costs of renovations to the Tampa Bay Times Forum in preparation for the Republican National Convention. BMO has recently completed NMTC financings for diverse businesses, including the Florida Aquarium in Tampa, Florida, a food service training facility in South Florida and a marine repair facility in Tampa, Florida. BMO was recently able to bring a unique perspective from the Firm’s P3 practice area to a complex NMTC transaction by incorporating new concepts to the structure that enabled the financing to close, providing significant resources to a battered women’s shelter in Florida. The lawyers at BMO continue to advise and counsel a diverse group of potential beneficiaries of NMTCs including businesses looking to expand, private and public universities and not for profit entities.

The firm also has a strong presence outside of Florida in the District of Columbia. Partially due to its unique urban nature, the District of Columbia has received the most NMTC investment on a per capita basis since inception of the NMTC program. As bond counsel for various District of Columbia issuers, BMO has been intimately involved with several high profile projects that utilized, or contemplated the utilization of NMTCs, including the Rhode Island Station, Howard Theatre and Georgia Commons projects.

The firm has developed a solution for governmental entities to utilize NMTC financings for their own developmental projects in the community.  The structure the firm implements for governments is rarely used nationwide and the potential for additional governmental utilization as the economy recovers from a recessionary period is significant. The financing structure is ideal for local governments interested in redeveloping downtowns, building community centers, expanding hospitals, constructing school buildings, and financing hotels, stadiums or entertainment complexes.  Further, BMO has worked with a number of local governments discussing how to incentivize private development through utilization of the NMTC program.

NMTC financings can assist for-profit, not-for-profit, or governmental entities, boost viability for marginal projects or increase profitability for existing or planned projects, businesses and developments.  The federal NMTC transactions usually result in a net benefit to the borrower of an amount equal to approximately 20 percent of the project costs. Annually, the Community Development Financial Institution Fund of the U.S. Treasury Department is allocated between $3.5 and $5.0 billion of credits to Community Development Entities for utilization in NMTC transactions.  With Florida being recognized as an underserved state in the NMTC area, BMO has used its Florida base to help expand the utilization of NMTC in the state, working with the State and local governmental economic development offices to help educate the Florida business community about how to use this valuable financial resource.

As experienced tax attorneys specializing in complicated financial transactions, BMO offers supplementary services to your general counsel or corporate counsel.  BMO provides experienced fiduciaries to counsel, advocate and represent the participant in NMTC financings.

Please contact us with questions regarding the benefits of this program, the uses of the subsidy, and to discuss the particulars of your project.