NEW MARKETS TAX CREDIT FINANCING FOR WORKING FORESTLAND

Sustainable Forest Futures (SFF), through a working partnership with Coastal Enterprises, Inc. (CEI), facilitates use of the federal New Markets Tax Credit (NMTC) program as an important subsidized financing tool for working forestland projects. To be eligible for this program, projects must promote economic development, have community benefits, and provide for working forestland conservation.  Working forestland has been one of CEI’s primary focuses for its NMTC allocation, and SFF has played a central role in facilitating three working forestland deals:

• 13 Mile Woods Community Forest, Errol, New Hampshire: $2.4 million NMTC financing, 5,300 acres
• Lyme Timber Adirondack Forestland, New York: $30 million NMTC financing, 276,000 acres
• West Grand Lake Forest, Grand Lake Stream, Maine:  $13 million bank financing through NMTC, 22,000 acres

Assistance for Forestland Projects

NMTC financings have the capacity to provide a substantial subsidy to a project, but they can be very complex and labor intensive to put together.  SFF facilitates NMTC deals in various ways, as appropriate in conjunction with a specific deal.  SFF is prepared to work with land conservation organizations, timberland investment managment organizations (TIMOs), other private timberland investors, landowners, public bodies and others as applicable.

SFF services include, but are not limited to:

• Explaining the NMTC program, and answering questions about it.
• Reviewing  various options for how the NMTC could be used to enhance or facilitate your project.
• Providing substantial assistance in analysis of the financial elements of the project.
• Helping or taking the lead in identifying potential investors to take direct advantage of the tax credit;  helping prepare presentation materials and participating in meetings with potential investors.
• Helping or taking the lead in developing a workable financial structure for a project.
• Participating as appropriate in negotiations with various parties.
• Working with CEI as needed to assist in the process leading to CEI review and approval  of the project.

If you are interested in exploring the potential use of the New Markets Tax Credit to enhance, facilitate or help make happen a forestland project, please do not hesitate to contact Steve Rohde, President, Sustainable Forest Futures, by telephone: 603-229-0679, ext. 107, or by email.

For more details about the NMTC Program,  Read More.