Qualified Active Low-Income Community Businesses (QALICB) are businesses selected to receive funds from one or more Community Development Entities (CDE) through the federal New Markets Tax Credit (NMTC) program. To qualify for NMTC funding, the QALICB entity must meet certain eligibility requirements by being in a qualifying census tract or by serving certain targeted populations.
Our attorneys help QALICBs and their sponsor organizations navigate the complex NMTC structuring and closing process. We specialize in advising nonprofit corporations engaging in impactful community development activities in low-income communities through the NMTC program. Our work for QALICBs includes: advice on ongoing NMTC program compliance, guidance regarding single purpose entity formation, assisting with federal and state tax exemption applications, negotiating financing and other transaction documents, drafting opinions, advising on tax structuring, and assisting in the unwind and entity dissolution after the tax credit compliance period. Our attorneys also represent CDE lenders in NMTC matters.