An emphasis on new markets tax credit (NMTC) investment in nonmetropolitan and tribal communities seems to be paying off, but there’s still work to do. That was the consensus from the “Rural Focus: NMTCs in Nonmetro Areas and Indian Country” panel at the Novogradac 2024 Fall New Markets Tax Credit Conference on Oct. 24-25 in New Orleans. Kutak Rock partner Judd Larson, among others in the field, participated in this panel and provided some insights on the topic in a new blog post.

The blog post, which can be viewed here, summarizes the panel discussion highlighting opportunities and challenges for NMTC investments in rural and native communities. Panelists discussed the increased NMTC allocations that targeted nonmetropolitan and Tribal areas with a recent focus on projects beyond manufacturing, such as healthcare facilities, food banks, community centers, and infrastructure. They noted the CDFI Fund’s expanded definitions of “rural” and “nonmetro” areas, and outlined specific challenges, including limited construction seasons, complex Tribal legal frameworks, and a lack of service history in remote areas. Despite these obstacles, panelists emphasized the significant community benefits, especially in Tribal lands, where NMTC investments can support critical infrastructure and healthcare improvements.

Judd represents banks, syndication funds, investment funds, community development entities, borrowers, developers, sponsors, non-profit entities, leverage lenders, and private equity in a range of complex commercial transactions through the use of new markets tax credits, investment tax credits, opportunity zones, state new markets tax credits and other tax-incentivized financings. His representations span coast to coast.