New Markets Tax Credits (NMTC)

PCDC’s NMTC program helps meet the capital needs of community-based health providers across the country.

Since 2008, our NMTC program has allocated $378 million of tax credits to help community-based health providers expand and enhance primary care and behavioral health services nationwide.

By sourcing third-party investments into primary care projects, our NMTC program creates subsidies that ultimately reduce the amount of debt needed for the project. Through below-market interest rates, high loan-to-value ratios, and long loan maturities, our program facilitates large primary care expansion within underserved communities, increasing the affordability of the project for providers and increasing access for patients.

Our program funds between 15-20% of a project’s costs, often bridging the affordably gap associated with high-cost expansion projects. We typically utilize NMTC to fund projects ranging in size from $5 million to $15 million. For larger transactions, we work with other community development entities (CDEs) to combine NMTC allocations and blend investment equity, and other sources, to achieve the optimal outcome for our clients.

In addition to NMTC equity, we utilize other sources of capital, including public and philanthropic dollars, sponsor equity, and our below-market debt financing. Combined, these sources create a capital package that can transform a community’s health center hopes into a reality.

Renewal House

Supporting addiction treatment services for women with children in Nashville, Tennessee

Santa Cruz

Responding to health care needs for unhoused people in California