A new offering from FORVIS can help shave weeks off New Markets Tax Credit (NMTC) transaction times.
The Federal NMTC Program helps economically distressed communities attract private capital investment by providing investors with a federal tax credit. These investments are used to finance businesses and community projects, breathing new life into historically neglected, underserved low-income communities.
FORVIS’s newly released software, called New Markets Tax Credit Forecasting Tool, can generate the 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 streamlining the due diligence and approval process.
FORVIS has tapped Mike Roney to lead this new service line and help guide clients through the NMTC process using New Markets Tax Credit Forecasting Tool. Prior to joining FORVIS, Roney spent eight years at a large international firm focused on assisting clients navigating the complex world of NMTCs. During this time, he evaluated countless projects, helped secure more than $200 million in NMTCs and assisted clients with all aspects of the NMTC process. Roney holds a B.S. degree in business economics from Miami University in Oxford, Ohio, and a J.D. from Capital University Law School in Columbus, Ohio.
“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,” Roney said. “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 a competitive 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 better rates and terms and more flexible features than the market.
FORVIS developed the New Markets Tax Credit Forecasting Tool in part by listening to existing clients who operate in this space and who sought ways to streamline the tax credit application process. The new system is already generating buzz with clients.
“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.”
For more information, go to forvis.com.
FORVIS is a professional services firm providing assurance, tax, and advisory services. Created by the merger of equals of BKD, LLP and Dixon Hughes Goodman, LLP (DHG), FORVIS is driven by the commitment to use our forward vision to deliver Unmatched Client Experiences™. Ranked among the top 10 public accounting firms in the country, FORVIS has 5,500 dedicated professionals who serve clients in all 50 states as well as across the globe. FORVIS is built upon the strong legacies of BKD and DHG, which are reflected in a name that comprises partner initials and represents our unique focus on preparing our clients for what is next. Visit forvis.com for additional information.