nmtc-calc 0.1.0

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

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.

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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.

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Installation

cat > README.md << 'EOF'
# 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

```bash
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,
)

# Full capital stack
transaction.structure(deal).summary()

# 7-year credit schedule
credits.schedule(deal).summary()

# Investor economics & IRR
investor.analyze(deal).summary()

# Net subsidy to project
subsidy.analyze(deal).summary()

---

Modules

Module	What It Computes
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

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Key NMTC Concepts

Term	Definition
QEI	Qualified Equity Investment — the total investment made into the CDE
QLICI	Qualified Low-Income Community Investment — loans from CDE to QALICB
QALICB	Qualified Active Low-Income Community Business — the project borrower
CDE	Community Development Entity — allocatee of NMTC authority
A Loan	Senior QLICI mirroring the leverage loan
B Loan	Subordinate QLICI mirroring investor equity, typically forgiven at year 7
Credit Price	$ per $1 of NMTC benefit paid by investor (typically $0.70–$0.85)

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Running Tests

PYTHONPATH=. pytest tests/ -v

32 tests across all modules.

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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

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License

MIT © 2026 Jaypatel1511