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nmtc-calc 🏗️

Python calculator for New Markets Tax Credit (NMTC) leveraged transactions.

Built for CDFI practitioners, CDEs, tax credit investors, and project sponsors who need reproducible, auditable NMTC deal math — without starting from scratch in Excel.


Why nmtc-calc?

New Markets Tax Credit transactions involve complex layered capital structures — QEIs, QLICIs, leverage loans, 7-year credit schedules, investor IRR, and net subsidy calculations. Every practitioner builds these models from scratch in Excel. nmtc-calc standardizes and automates the math.


Installation

pip install nmtc-calc

Quickstart

from nmtccalc import NMTCDeal, transaction, credits, investor, subsidy

deal = NMTCDeal(
    project_name="Southside Community Health Center",
    total_project_cost=10_000_000,
    nmtc_allocation=10_000_000,
    credit_price=0.83,
    leverage_loan_rate=0.045,
    qlici_a_loan_rate=0.045,
    qlici_b_loan_rate=0.010,
    cde_fee_rate=0.02,
    compliance_years=7,
    discount_rate=0.08,
)

transaction.structure(deal).summary()
credits.schedule(deal).summary()
investor.analyze(deal).summary()
subsidy.analyze(deal).summary()

Modules

  • transaction — QEI, NMTCs, investor equity, leverage loan, QLICI A/B split
  • credits — 7-year credit schedule (5/5/5/6/6/6/6%), PV of credits
  • investor — Investor IRR, MOIC, gross/net benefit
  • subsidy — Net subsidy to QALICB, effective cost of capital, interest savings

Key NMTC Concepts

  • QEI: Qualified Equity Investment into the CDE
  • QLICI: Qualified Low-Income Community Investment (loans to QALICB)
  • QALICB: Qualified Active Low-Income Community Business (project borrower)
  • CDE: Community Development Entity (allocatee of NMTC authority)
  • A Loan: Senior QLICI mirroring the leverage loan
  • B Loan: Subordinate QLICI, typically forgiven at year 7
  • Credit Price: dollars per dollar of NMTC benefit (typically 0.70-0.85)

Running Tests

PYTHONPATH=. pytest tests/ -v

32 tests across all modules.


Who This Is For

  • CDEs structuring NMTC allocations for projects
  • Tax credit investors evaluating deal economics
  • Project sponsors understanding subsidy and cost of capital
  • CDFI analysts modeling NMTC transactions in IC memos

License

MIT 2026 Jaypatel1511

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Python calculator for New Markets Tax Credit (NMTC) leveraged transactions

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