5 Key Strategies to Advance Equitable Access to NMTC

The New Markets Tax Credit (NMTC) Program has been instrumental in promoting economic development in underserved communities, but access to guidance and support in accessing these tax credits has remained unequal. Those who are most impacted by NMTCs, such as rural communities and minorities, often face the highest barriers to access. Impact Marketplace is creating a pathway toward equitable access to these powerful tax credits via our powerful digital platform, and there is an abundance of opportunities to streamline the NMTC process in the digital space.  In this article, we will explore 5 key strategies for leveraging technology and online platforms to advance equitable access, transparency, and efficiency within the NMTC Program.

Targeted Online Outreach and Education:

Information about NMTC opportunities is often limited to investors and circles of people who are already “in the know.” To ensure equitable access, leveraging online platforms for targeted outreach and education is crucial. Utilizing digital channels, social media, and online communities, we can reach a wider audience and engage with community organizations, minority-owned businesses, and local stakeholders. Online resources, webinars, and interactive content can empower underrepresented communities, providing them with the information they need to participate in the NMTC Program effectively.

Streamlined Digital Application and Compliance Processes:

The NMTC application process is often analog and outdated. Digital transformation can significantly enhance the transparency and efficiency of the NMTC Program. By developing an intuitive online platform, we can streamline the application and compliance processes. Applicants can submit their proposals digitally, reducing paperwork and manual processing. A centralized digital portal can facilitate real-time communication, document sharing, and progress tracking, improving transparency and expediting the review and approval processes.

Enhanced Reporting and Data Analytics:

Communities impacted by NMTCs often have limited capacity to track outcomes. Within a digital framework, the NMTC Program can leverage advanced reporting capabilities and data analytics to enhance transparency and measure impact. By integrating automated reporting functionalities, stakeholders can easily track project outcomes, job creation, and community benefits. Advanced data analytics tools can provide valuable insights, enabling policymakers to make data-driven decisions and continuously improve the program’s effectiveness.

Online Community and Collaboration Platform:

The main participants in the NMTC process – investors, community development entities, and project leaders – often operate in silos and are not connected with one another. To foster collaboration and partnership, an online community and collaboration platform can be established. This platform would serve as a digital hub where CDEs, investors, and local stakeholders can connect, share best practices, and collaborate on projects. By facilitating collaboration, this platform promotes knowledge exchange, resource sharing, and alignment of investment goals, thereby ensuring equitable access and transparency within the NMTC Program.

Digital Training and Capacity Building:

Those impacted by NMTCs often have to rely on consultants to access relevant and trustworthy information about the program. Within a digital framework, providing online training programs and capacity-building resources is essential for equitable access. Webinars, e-learning modules, and interactive workshops can empower participants, particularly underrepresented communities and smaller CDEs, to navigate the program effectively. Digital resources can be easily accessed, providing ongoing support and building the technical capabilities necessary to participate in the NMTC Program successfully.