The U.S. Department of the Treasury's Community Development Financial Institutions Fund has announced $7 billion in New Markets Tax Credit allocations to organizations working to revitalize distressed and low-income communities.
A hundred and twenty community development entities headquartered in thirty-six states, the District of Columbia, and Puerto Rico were awarded tax credit allocation authority with the aim of attracting investments in local jobs, community facilities, and affordable housing. Investors in CDEs receive a credit against their federal income taxes totaling 39 percent of the total financing for select projects. The largest round of allocations since the NMTC program's inception in 2001 includes nearly triple the number of minority-owned or minority-controlled organizations as the last round, with an estimated $1.4 billion to be invested in non-metropolitan counties.
Grant recipients include Arlington, Virginia-based Capital Impact Partners, which was awarded $70 million in tax credit allocations; Hope Enterprise Corporation in Jackson, Mississippi, which will receive $50 million; and the New York city-based Nonprofit Finance Fund, which was awarded $50 million.
"We are excited to further use NMTC benefits to channel investor capital toward projects in communities with the greatest need," said Norah McVeigh, managing director of financial services at NFF, which uses NMTCs to provide flexible loan terms to help nonprofits complete facility improvements. "Investment in infrastructure and facilities is vital to supporting quality service-delivery and growth."
"By attracting private business and development to distressed communities, this tax credit spurs economic growth, creates jobs, and brings new services and opportunities where they are most needed," said Treasury Secretary Jacob J. Lew.
For a complete list of grant recipients, see the Treasury Department website.