New Markets Tax Credit Investors
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Investing in Impact:
Maximize Your NMTC Returns While Driving Social & Environmental Change
LifeCity supports New Markets Tax Credit investors as a third-party impact management partner. From assessing the impact of your pipeline or potential project to looking back on outcomes after unwinding the deal, LifeCity can bring your organization credibility, accuracy, and efficiency when it comes to impact management.
New Markets Tax Credit (NMTC) investors should pay close attention to third-party impact assessments for several reasons:
Increase credibility through transparency and verification: Third-party assessments provide an objective and independent evaluation of a project's impact by validating the projected community benefits. This transparency builds trust and accountability for investors and other stakeholders.
Mitigation of recapture risk: Investors in NMTC projects are ultimately dependent upon the Qualified Active Low-Income Community Business (QALICB) adhering to the NMTC requirements throughout the 7-year compliance period to avoid the potential recapture of their tax credits. By having a third-party assess and monitor a project's alignment with those requirements, potential issues can be identified and addressed proactively, reducing the risk of recapture.
Demonstrating impact to the CDFI Fund: Community Development Entities (CDEs), which channel NMTC investments, are increasingly being held accountable for demonstrating the actual community impact of their projects. The CDFI Fund, which administers the NMTC program, favors applications that utilize third-party sources to measure and support their projected outcomes. For investors, partnering with CDEs who prioritize impact assessment can improve the attractiveness of their investments to the CDFI Fund and bolster the credibility of the NMTC program.
Strategic allocation of resources: Third-party assessments can help CDEs strategically allocate their NMTC resources to projects that offer the greatest community impact and align with both community plans and the CDE's mission. Investors benefit by participating in projects more likely to achieve their goals and create meaningful change in underserved areas.
Improve brand value: CDEs benefit from third party impact reporting through reports and videos that both optimize impact and market your mission. By associating your brand with third-party reporting, you will continue to be a sought-after partner in the field.
The New Market Tax Credit program generates $8 of private investment for every $1 of federal funding.
800%
LifeCity supports CDEs & project teams during project development through:
Impact Development Strategy: Ensure equitable input and outcomes by listening to the community you serve through surveys and Community Advisory Boards, while leveraging this data in Community Benefits Agreements. This option is key for grant and government funding and can also serve as a means for raising additional funding for your impactful project. View Sample Report
Third-party Pipeline Validation Report for your NMTC Application: LifeCity can review the metrics of your pipeline deals, leveraging the latest social and environmental information to help ensure that your assumptions and impact metrics are accurate and credible in your application.
LifeCity supports CDEs in the following ways before closing:
Low-income Community (LIC) Assessment : LifeCity can help you identify opportunities to maximize the impact of your investments through partnerships in the local community. This report is an easy and efficient way to do your due diligence, increase the credibility of your pipeline analysis, and improve project outcomes. View Sample Report
Economic Analysis: In addition, we can contextualize economic projections (jobs created, revenue generated, and more) through direct engagement with community leaders. LifeCity’s economic analysis reports can help clarify what the numbers mean for the specific community in which you are investing. View Sample Report
After Closing, LifeCity can provide the following services:
Impact Report & Video Storytelling
Have you ever wondered if your investment assumptions proved true? LifeCity will visit your project and interview staff and community stakeholders to verify and validate your impact assumptions. Data and quotes from this interview process can be leveraged in your government applications for tax credits while making your impact data more credible and compelling.
Check out our video library for more examples of impact storytelling.
Support throughout the NMTC deal lifecycle:
“The New Markets Tax Credit program is a critical source of financing… By providing gap funding for projects ranging from federally qualified health centers to large-scale manufacturing facilities, the program supports expanded services and employment opportunities to help improve residents’ quality of life.”
– En Jung Kim, Executive Director, Managing Director at JPMorgan Chase
OUR IMPACT
True sustainability is rooted in community. Our impact goes beyond carbon metrics. We help organizations understand how their actions affect the people and places they serve. By combining environmental strategies with social equity goals, we support businesses in creating measurable changes that improve lives, strengthen local economies, and respect the unique needs of each community. From reducing waste to amplifying stories of impact, we’re building a more just and sustainable future: one neighborhood, one organization, one initiative at a time.
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COMMUNITY CONVERSATIONS
"Working with LifeCity has transformed the way we view our impact. Their Economic Analysis Reports don’t just lay out numbers, they help us see the real people and communities behind our investments. The stories and qualitative insights they include bring much-needed local context to the data, reminding us why we do this work: to empower communities, support their goals, and make a meaningful difference in people’s lives."
- Traci Vaine, CEO,
CEI Capital Management
Schedule a Meeting With One Of Our Consultants
Have you ever wondered if your investment assumptions proved true? LifeCity can verify and validate your impact assumptions for tax credit applications. Make your impact data more credible and compelling!
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