LISC’s New Markets Tax Credit (NMTC) activities stimulate the investment of private capital in the distressed communities that LISC serves. A pioneer in the creation and use of this new federal program, LISC has focused its efforts on financing the development of commercial and community space and housing that generates jobs, providing needed goods and services, and reversing physical deterioration in struggling communities. LISC’s NMTC efforts are managed by National Equity Fund, Inc., its tax-credit equity affiliate.

LISC addresses a community’s unique economic development challenges by financing transactions that meets its particular needs. Whether this allows a food bank in Washington State to finance a warehouse distribution center, or enables a motorcycle parts manufacturer to remain and grow in rural Wisconsin, LISC uses NMTCs to structure the appropriate financing products. This has often involved supplementing historic tax credits to reclaim community assets for productive use.

LISC also focuses on transactions that lead to revitalization beyond the particular project being financed, such as shopping centers, which can stimulate the redevelopment of commercial strips. Another strategic approach has involved financing several arts-related projects that represent components of broader efforts to transform neighborhoods. Similarly, LISC has financed significant amounts of incubator space for local entrepreneurs.

In addition to commercial space, LISC provides NMTC financing for charter schools, day care centers, and other community facilities.