Our interdisciplinary New Markets Tax Credits (NMTC) lawyers help investors, lenders, businesses, real estate developers, nonprofits, and community development entities (CDEs) close transactions that take advantage of federal and state NMTC programs, often in combination with other economic development incentives. Drawing on the skills of attorneys throughout our multi-service law firm, including in our tax, real estate, business, environmental, energy, and government relations practice groups, we ensure that the right mix of lawyers handles every aspect of your NMTC transaction.

Before you begin your next development project, find out how we can help you benefit from federal and state NMTC programs and other economic development incentives that will reduce the overall cost of your project. Our areas of service include:

  • Identifying and securing state and federal NMTC allocation
  • Innovative structuring of tax credit transactions
  • Educating lenders and stakeholders regarding the unique characteristics of an NMTC financing
  • Structuring project financing to maximize incentives
  • Preparing all necessary legal contracts and loan documentation
  • Providing advice on interrelated issues in the areas of tax, energy, environmental, and real estate law
  • Providing all required legal and tax opinions
  • Assisting in all compliance and asset management issues

In addition to our knowledge and experience in NMTC financings Pierce Atwood attorneys offer options for alternative fee arrangements that make it easier for our clients to pursue development projects.

Areas of Expertise

We have a great deal of experience with many different economic development programs from tax credits to grants to loan guarantees and bond programs. We can help you identify which incentives work for your project and then create a transaction structure that allows you to maximize each benefit.

Representative Experience

For a Community Development Entity (CDE) client, we closed a $12 million New Market Tax Credit (NMTC) pooled loan fund. This is one NMTC transaction in a series of financings we are handling under the federal and state new markets programs.

NMTC Financing for Community Development Entity

Many developers and businesses have heard a bit about NMTC financing, but they may not know how to begin and how to secure NMTC allocation in a highly competitive environment. We can help with that process by leveraging our contacts in the NMTC world to find the right CDE(s) and investor for your project.

We regularly advise our CDE clients on the management of their NMTC assets in a variety of situations from “unwinding” transactions to handling disputes, litigation, foreclosure or bankruptcy. Being a full service collaborative law firm, our tax credit attorneys work with experts in other areas to provide integrated comprehensive solutions.

State new markets programs have taken on a much greater importance over the last several years. Pierce Atwood has been involved in many state NMTC transactions, whether paired with federal NMTC allocation or on a stand-alone basis. In Maine we have been heavily involved in eight of the ten transactions to close to date.

Representative Experience

For a Community Development Entity (CDE) client, we closed a $12 million New Market Tax Credit (NMTC) pooled loan fund. This is one NMTC transaction in a series of financings we are handling under the federal and state new markets programs.

NMTC Financing for Community Development Entity

Representative Experience

We represented ND OTM LLC, a subsidiary of ND Paper, in a $30 million new markets tax credit financing that will be used to finance the restart of a pulp mill located in Old Town, Maine.  The mill was shuttered in 2015, and the restarting of the mill will result in approximately 130 new direct jobs, and hundreds of indirect jobs in the forest products industry. 

$30 Million NMTC Financing to Restart Pulp Mill

We assisted Advantage Capital Partners in organizing and establishing a NMTC-based pooled loan fund under the federal and State of Maine new markets tax credit programs. Through the pooled loan, Advantage increased its investment power and positioned itself to help more business grow. We assisted with the subsequent $10 million debt, convertible debt, and equity investment in a veterinary pharmaceutical company. We also assisted with a $27 million investment in a manufacturer producing merchandise displays systems.

Advantage Capital Partners NMTC-Based Pooled Loan Fund

Representation of Athens Energy and its sister company, Maine Woods Pellet Company, in connection with all aspects of the financing of a $38 million biomass electricity generation facility, including $31 million of new markets tax credit financing ($31 million of State of Maine allocation and $7.5 million of federal allocation) and the syndication of renewable energy investment tax credits (ITC).

Athens Energy & Maine Woods Pellet Company Biomass Project Tax Credits

We advised Burgess Biopower on all aspects of financing the redevelopment of a shuttered paper mill into a state-of-the-art 75 MW biomass power plant located in Berlin, New Hampshire, which will burn waste biomass and sell power to the grid. The financing involved several sources of funds, including $63.5 million of new markets tax credit financing with allocation from six CDEs. The project also involved a $90 million section 1603 cash grant in lieu of an investment tax credit or production tax credits. The balance of the project was financed by $200 million of rated bonds provided by a consortium of financial institutions. We also advised with respect to EPC agreement, off-take power purchase agreement with PSNH and all project related agreements.

Burgess Biopower New Hampshire Mill Redevelopment

Pierce Atwood represented CEI-Boulos Capital Management, LLC, in connection with the creation of a $20 million private real estate investment fund in partnership with Woodforest National Bank. CEI-Boulos Capital Management will manage the fund, which will invest in real estate projects in areas designated as Qualified Opportunity Zones across Woodforest's 17-state footprint. The Opportunity Zone program is a new community investment tool established by Congress to encourage long-term investments in low-income urban and rural communities nationwide.

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Creation of $20 Million Private Real Estate Investment Fund

Represented developer Stephen Duprey in connection with the acquisition and financing of a mixed-use restoration project in Concord, New Hampshire, involving the former Eagle Hotel building and two neighboring buildings on Dixon Avenue with a total of nearly 100,000 square feet of space.  This project received $13 million in New Markets Tax Credit support.

Downtown Concord Restoration Project

Represented the Capitol Center for the Arts in connection with the acquisition of, and financing for, the historic restoration of the Concord Theatre in Concord, New Hampshire.  The project utilized $5.4 million in New Markets Tax Credit allocation. The theatre will act as a satellite location for smaller performances and events.

Historic Restoration of Concord Theatre

Representation of GO Lab, a startup company helping to revitalize Maine’s forest products industry by repurposing a former paper mill to develop and manufacture environmentally responsible wood fiber insulation, in all aspects of the development of its business.

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Innovative Insulation Manufacturer

Representation of Capone Iron Corporation in a $10 million new markets tax credit financing for the construction of a manufacturing facility.

New Markets Tax Credit Financing for Manufacturing Facility

For a Community Development Entity (CDE) client, we closed a $12 million New Market Tax Credit (NMTC) pooled loan fund. This is one NMTC transaction in a series of financings we are handling under the federal and state new markets programs.

NMTC Financing for Community Development Entity

Represented Bangor Savings Bank in its role as tax credit investor in a state and federal New Markets Tax Credit transaction providing financing for the renovation and modernization of the Millinocket Memorial Library, a private nonprofit that now operates the former public library.

NMTC Investment Helps Local Library

Assistance to Technology Access Foundation in connection with new markets tax credit financing matter.

Nonprofit in NMTC Financing Matter

We represented the Downeast Institute for Applied Marine Research & Education, a nonprofit in Beals, Maine, with the financing of its $6.7 million expansion, including a $5 million new markets tax credit financing. The expansion will add laboratory, office, housing, storage and conference space, as well as making improvements to the existing hatchery (used to grow soft shell clams and other commercially important bivalves to restock depleted resources).

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Nonprofit Research Institute in Financing of $6.7 Million Expansion

We assisted the Farnsworth Art Museum, located in Rockland, Maine, with a combined state and federal new markets tax credit financing, helping the museum to secure capital needed for critical repairs and improvements to the building. The NMTC investment has allowed the museum, which opened in 1948 and boasts a remarkable collection of over 15,000 objects, to stay open and continue welcoming more than 100,000 visitors annually.

Preserving Access to American Art Collections