BarbriSFCourseDetails
  • videocam Live Online with Live Q&A
  • calendar_month October 29, 2025 @ 1:00 p.m. ET./10:00 a.m. PT
  • signal_cellular_alt Intermediate
  • card_travel Real Property - Finance
  • schedule 90 minutes

New Markets Tax Credits After OBBBA: Deal Structures, Pairing With Other Tax Credits, Allocating COD Income to Partners

$347.00

This course is $0 with these passes:

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Description

OBBBA, which was signed into law by President Trump on July 4, 2025, permanently extends the NMTC program, which was set to expire at the end of 2025. Extending the NMTC program allows the Community Development Financial Institutions Fund (CDFI) to continue allocating $5 billion in NMTC awards annually to support projects in low-income communities nationwide. OBBBA also permits a five-year carry-forward for any NMTCs that are not allocated by the CDFI in a given year.

The NMTC program provides significant opportunities for investors in economic development projects to secure additional financing to complete projects in low-income areas. NMTCs can offer a critical source of financing for a variety of qualified equity investments (QEIs), including mixed-use affordable housing, charter schools, historic preservation projects, manufacturing, food and beverage processing, federally qualified health centers, and renewable energy projects. 

These tax credits are subject to recapture during the seven-year credit period if a QEI fails to satisfy specific investment and qualified business requirements. Counsel must understand the recapture triggers, the impact of the IRS safe harbor for HTCs and current regulations relating to "qualified active low-income community businesses" and "qualified low-income community investments," true debt issues, lease vs. ownership issues, the economic substance doctrine, and cancellation of indebtedness planning when negotiating new transactions, evaluating existing deals, or pairing NMTCs with other tax credit and tax deferral programs.

Listen as our authoritative panel discusses best practices for structuring NMTC deals, pairing them with other programs like HTCs, QOZs, coordinating tax-exempt bond financing with USDA/SBA lending, and allocating COD income among partners. The panel will also discuss trends in the NMTC program, IRS regulations and guidance, and other developments under the Trump administration.

Presented By

Daniel J. Kolodner
Partner
Klein Hornig LLP

In his national practice, Mr. Kolodner represents sponsors, lenders, and investors in community development projects using tax credit financing. Bringing more than 20 years of experience, he focuses on complex deal structuring in a variety of transactions that combine tax incentives—notably New Markets Tax Credits (NMTC), Historic Tax Credits (HTC), Low-Income Housing Tax Credits (LIHTC), and Renewable Energy Tax Credits—with state tax credits that mirror them, as well as other financing sources. Mr. Kolodner’s clients include large and small developers in both the for-profit and nonprofit sectors, Qualified Active Low-Income Community Businesses (QALICBs), Community Development Entities (CDEs), institutional tax credit investors, community lenders, and regional banks. Mr. Kolodner collaborates with clients to complete transactions that provide affordable housing, save and restore historic buildings, and create highly valued neighborhood facilities. He serves on the board of Preservation Massachusetts, participates in the tax credit coalitions for both HTC and NMTC, and lobbies for tax credits on national and state levels and regularly speaks at local and national conferences on tax incentives and complex deal structuring.


Joseph E. Smith
Shareholder
Maynard Nexsen PC

Mr. Smith has over 25 years of experience and focuses on tax-advantaged finance and securities transactions and on infrastructure transactions. He advises government, nonprofit, and for-profit organizations on taxable and tax-exempt financings, serving as bond counsel, disclosure counsel, issuer’s counsel, and underwriter’s counsel. Mr. Smith also advises clients on related matters, including financing restructurings, interest rate swaps, and tender offers. Finally, he assists clients in navigating post-issuance tax and securities issues, such as determining permitted uses of bond proceeds, arbitrage and rebate compliance, and continuing disclosure. Mr. Smith advises clients on other types of tax-advantaged financings, such as deals eligible for federal and state new markets tax credits and deals eligible under the federal Opportunity Zone program. In recent years, he has closed several hundred million dollars in new markets tax credits financings. A hallmark of Mr. Smith’s NMTC experience has been his understanding of how to combine federal NMTCs with other financing programs like state NMTCs, federal and state historic tax credits, and taxable and tax-exempt bond financing. He has served as President and a member of the Executive Committee of the National Association of Bond Lawyers and also has served as Chair of NABL’s Securities Law and Disclosure Committee.

S. Shawn Whitney
Tax Credit Finance Chair
Polsinelli

Mr. Whitney is dedicated to structuring and financing low-income housing, historic rehabilitation, and new markets tax credit transactions. Utilizing his unique experience structuring tax credit transactions, Mr. Whitney leads a team that represents developers, investors, syndicators, lenders and Community Development Enterprises (CDEs) in all aspects of tax credit transactions. In 2024, the team closed over 73 tax credit transactions totaling over $900 million in tax credit equity. Mr. Whitney and his team regularly represent CDEs on the deployment of New Markets Tax Credit (NMTCs) allocations. He also represents Qualified Active Low Income Community Business that have received NMTCs awards. Mr. Whitney has a passion for affordable housing, representing lenders in the financing of hundreds of millions of dollars annually of LIHTC construction and permanent debt for both 4% and 9% deals. Finally, Mr. Whitney is involved in billions of dollars of historic rehabilitation projects nationwide utilizing federal and state historic tax credits. His historic rehabilitation experience includes the representation of historic tax credit bridge lenders, syndicators and developers. Many of his projects also utilize other incentives such as tax abatements/exemptions and tax increment financing.

Credit Information
  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

Date + Time

  • event

    Wednesday, October 29, 2025

  • schedule

    1:00 p.m. ET./10:00 a.m. PT

I. Overview: NMTCs and OBBBA's permanent extension of the program; double-round in 2025 - 10 billion available rather than $5 billion and the issues and challenges this presents

II. Structuring an NMTC deal

III. Qualification issues/deal readiness/tax opinion issues

IV. Pairing NMTCs with HTCs, QOZs, tax-exempt bond financing, and other tax benefits, including the historic tax credit safe harbor

V. Allocation of costs in an unwind

VI. Drafting operating agreements to cover the allocation of COD income among partners

VII. Restructurings/workouts during the seven-year compliance period; recapture risk

VIII. IRS regulations and guidance

IX. NMTC exit strategies

X. Practitioner pointers and key takeaways

The panel will review these and other key issues:

  • What is the effect of OBBBA's permanent extension of the NMTC program?
  • What are best practices for structuring NMTC deals to ensure compliance with IRS program requirements?
  • What is the potential impact on the use of NMTCs with the IRS safe harbor for partnerships claiming rehabilitation tax credits?
  • How are NMTC deals impacted by cancellation of indebtedness?