Mining and metals operations have long served as engines for economic growth, supplying the raw materials that feed infrastructure, manufacturing, energy, and national security. Yet, the sector continues to face a familiar challenge: securing capital for large-scale projects, particularly in areas that need investment the most. High costs, regulatory hurdles, and pressure to support local communities can inhibit expansion and modernization.
For metals and mining firms, whether upgrading processing plants, building new facilities, or investing in community-focused infrastructure, there is a powerful but underutilized tool: the New Markets Tax Credit (NMTC) program.
 What is the NMTC Program— In Brief:
Established in 2000, the NMTC program is designed to attract private investment to economically distressed, low-income communities across the U.S. by offering investors a federal tax credit in exchange for qualified equity investments in certified intermediaries (so‑called Community Development Entities, or CDEs).
CDEs then use that capital to make loans or equity injections into Qualified Active Low-Income Community Businesses (QALICBs) located in eligible low-income census tracts.
NMTC structures typically generate a net subsidy of 20-25%, depending on the structure of the deal. Investors earn 39% of their original equity investment claimed over seven years (5% per year for the first three years and 6% for the last four).
New Markets Tax Credit financing significantly lowers the cost of capital, allowing high impact projects that are often too expensive under traditional financing to move forward.
 Why Metals & Mining Projects Are Natural Fits for NMTCs:
Capital Intensity: Mining and metals facilities are often massive capital projects, from site reclamation and ore-processing plants to smelters and refineries. NMTC financing helps offset substantial upfront costs, bridging equity gaps that conventional debt may not cover.
Community Impact: Mining and metals operations are often located in economically rural or distressed regions, where job creation, infrastructure improvements, and economic stimulus are urgently needed. By investing in such areas, mining projects are inherently mission-fit for NMTC allocation.
Long-Term Economic Benefit: Mining and metals facilities typically produce high-quality, durable jobs in operations, maintenance, logistics, and skilled trades which support economic stability and multigenerational prosperity.
Flexible Use of Proceeds: NMTC investments can fund a variety of project needs, including real estate (new build or rehab), equipment, working capital, infrastructure upgrades, and more. This allows companies to address site improvements, environmental remediation, community facilities (e.g. training centers), or expansion within a single funding structure.
How NMTC Financing Works in Practice for Mining & Metals:
Imagine a mid-size mineral-processing facility planning a $25 million expansion to construct a new beneficiation plant and install advanced processing equipment. Traditional lenders may provide 60-70% financing, but the remaining equity (often 30-40%) may be hard to secure because of risk, long payback periods, or limited cash flow in early years.
By partnering with a certified CDE holding NMTC allocation, the facility could access subsidized equity that would significantly lower the net cost of the expansion, enabling the project to proceed while unlocking jobs, increased production capacity, and long-term economic benefits to the surrounding community.
In addition to financial leverage, NMTC structures can help fund workforce training programs, environmental remediation efforts, or community-oriented infrastructure, all of which align with the NMTC program’s objectives to support broader revitalization efforts.
Environmental, Social, and Governance Compliance:
Mining and metals projects are increasingly evaluated through an ESG lens, shaping both investment decisions and public perception. In a sector where transparency and community trust are central to sustainability, the ability to link capital investment with ESG outcomes strengthens both project viability and investor confidence.
NMTC-supported investments often emphasize their commitment to community benefits, such as workforce development, pollution mitigations, energy efficiency improvements, and essential infrastructure.
For metals and mining companies, this means NMTC-funded projects can simultaneously advance operational goals while demonstrating long-term environmental stability and social stewardship.
 The Current Moment: Why Mining & Metal Firms Should Act Now:
The NMTC program remains one of the most effective tools for driving private capital into underserved communities, and its appeal is rising amid growing interest in domestic sourcing, supply-chain resilience, and sustainable mining practices.
With the next round of allocation (a double $10B round) being announced in the coming months, there is an opportunity for projects to capture the NMTC subsidy in the short-term. Industry players who begin planning now, especially those with shovel-ready projects and identifiable community impact, will be best positioned to secure funding.
Moreover, NMTC-backed deals remain flexible. Firms can use NMTC equity to support infrastructure upgrades, environmental improvements, workforce development, or expansions in areas of growing importance as ESG expectations rise.
 How Impact Marketplace Stands Apart:
At Impact Marketplace, our goal is to use our years of industry experience to provide the most secure, transparent, and accessible platform for all who may be interested in the New Markets Tax Credit program. The platform functions as an intermediary, connecting project sponsors or borrowers with CDEs and NMTC investors.
Our proprietary system offers a fundamentally different approach to accessing New Markets Tax Credits and provides clarity in an industry traditionally characterized by reliance on personal networks.
Instead of attempting to navigate a complex network of CDEs and investors, our platform centralizes the entire ecosystem in one place. Impact Marketplace delivers a streamlined experience for organizations of all sizes— including those entering the NMTC space for the first time.
Each project receives a dedicated project manager, ensuring clarity and guidance from eligibility screening through closing. The result is a simplified, reliable experience tailored to early projects and seasoned developers alike.
 Important Considerations:
Location Eligibility: Projects must be in qualified low-income census tracts to receive NMTCs. Mapping and due diligence early in the planning process is essential.
Timing and Competition: NMTC allocations are limited, and demand typically exceeds supply. Projects should be prepared well in advance with financing, site control, and compliance documentation ready.
Demonstratable Community Impact: Projects that generate jobs, support workforce development, and provide long-term community benefit are favored for NMTC financing. Firms should be prepared to show how their project supports local economic growth, environmental impact, or community needs.
Long-Term Compliance and Reporting: The NMTC program typically requires compliance over a period of seven years, including reporting on job creation and community outcomes. Firms should plan for that long-term commitment and build in resources to manage compliance.
Conclusion:
As mining and metals sectors seek new ways to finance expansion, modernization, and community-focused infrastructure, especially in regions that have historically faced underinvestment, the New Markets Tax Credit program stands out as a proven and powerful tool. By lowering the cost of capital and coupling financial returns with social impact, NMTC financing can turn ambitious projects into engines of economic growth, job creation, and community revitalization.
For firms ready to invest, especially those with shovel-ready projects or community development ambitions, now is the time to explore the NMTC program as a strategic component of a broader capital stack.
