The Novogradac Journal of Tax Credits has announced the winners of its 2018 award program recognizing exceptional investment projects in low-income communities, and Parker Poe provided the legal counsel in connection with one of the winning projects.
The Journal of Tax Credits is a pre-eminent publication covering various aspects of tax credit finance on a national basis. Its Community Development QLICIs of the Year Awards are made to qualified community development entities (CDEs) that provide qualified low-income community investments (QLICIs) for projects located in or serving low-income communities. The Parker Poe New Markets Tax Credit (NMTC) team, through the efforts of Tyler Smith and Scott Manning, provided legal counsel to Carbon Conversions, Inc. in a project for which the CDE placed first nationally in the category of “operating business” transactions.
The award-winning project involved a multimillion-dollar financing for expansions and improvements of Carbon Conversions’ South Carolina operations. Carbon Conversions is in the business of recycling carbon fiber-reinforced parts for use in advanced manufacturing. It was looking to expand and create more job opportunities in rural South Carolina, and the company credits Parker Poe as being instrumental in helping it navigate the NMTC financing process.
“While NMTC funding provided much needed capital for equipment to expand our plant’s capacity, this financially complex funding source made securing and finalizing the financing a daunting task,” says Carbon Conversions CEO Mark Mauhar. “Parker Poe made the process manageable and handled the legal side of the transaction seamlessly, reducing stress on our company as we moved through the closing process.”
“NMTC financing can be a valuable tool for businesses of most all types looking to invest in capital projects in low-income communities,” says Tyler Smith of Parker Poe. “The Carbon Conversions project is a perfect example. We are thrilled to have supported the company in its expansion of ecofriendly operations while also creating and sustaining job opportunities in rural South Carolina.”
About the New Markets Tax Credit Program
The NMTC program, administered by the Department of the Treasury, was established by Congress in 2000 to incentivize increased investments in operating businesses and real estate projects (whether nonprofit or for-profit) located in low-income communities or serving targeted low-income populations. The NMTC program provides a 39 percent tax credit against federal income tax obligations in exchange for the making of investments in specialized financial institutions called “qualified community development entities” (CDEs).
About the Parker Poe New Markets Tax Credit Team
The Parker Poe NMTC Team assists borrowers and other NMTC financing participants across the country. Parker Poe can also be engaged to supplement the services of a borrower’s day-to-day counsel when such counsel is not versed in the intricacies of NMTC transactions.
For more information, please contact E. Tyler Smith, Esq., Counsel, at firstname.lastname@example.org or 864-577-6364. To learn more about Parker Poe’s New Markets Tax Credit team, please visit our webpage.