PDF Healthcare Community Development Group

HCDG

HEALTHCARE COMMUNITY DEVELOPMENT GROUP

5665 North Scottsdale Road Suite 110 Scottsdale, AZ 85250 Phone: (480) 427-3943

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HEALTHCARE COMMUNITY DEVELOPMENT GROUP

NEW MARKETS TAX CREDITS 101

November 2016

Overview

? New Market Tax Credits When and how can they be used? How are these transactions structured? Risks and Rewards What are the common deal issues?

? Roles and Responsibilities Investors Community Development Entity Leverage Lenders Qualified Active Low-Income Community Business Consultants and Advisors

HC DG

NMTC 101 November 2016

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The Big Picture

? Goal..... ? attract private investment to for-profit and non-profit businesses located in low-income, economically-distressed communities.

? How..... ? provide investors with credits against federal income tax in exchange for investments into businesses and real estate projects located in low-income communities.

? Outcomes..... ? employment, services, real estate development, strengthen communities, create opportunities.

HC DG

NMTC 101 November 2016

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Terminology: Understanding the Jargon

See next slide!

HC DG

NMTC 101 November 2016

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Acronyms Soup

? LIC = Low Income Communities ? QALICB = Qualified Active Low Income Community Business ? CDE = Community Development Entity ? CDFI Fund = Community Development Financial Institution Fund ? QEI = Qualified Equity Investment ? QLICI = Qualified Low Income Community Investment

HC DG

NMTC 101 November 2016

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