April 28, 2026: Beginning With the End in Mind: NMTC Exits for Investors and Businesses

Unwinding a new markets tax credit (NMTC) transaction is often complex, requiring thorough knowledge and a careful approach. On this week's episode of Tax Credit Tuesday, Michael Novogradac, CPA, and Nicolo Pinoli, CPA, discuss the exit strategies available to parties of an NMTC investment after the compliance period ends, and the tax issues associated with unwinding. Novogradac and Pinoli discuss the basics of the NMTC and review common NMTC investment structures. The pair then discuss the implications of exit strategies from the perspective of the qualified active low-income community business (QALICB) and the investor, including executing the put-call option, distributing qualified low-income community investment (QLICI) loans and more. The two also highlight the upcoming Novogradac NMTC Exit Strategies Webinar and the Novogradac 2026 Spring Renewable Energy Tax Credits Conference.