A total $5 billion in New Markets Tax Credits (NMTC) will be awarded to 102 organizations to spur economic growth in low-income urban and rural communities nationwide, announced the Treasury Department’s Community Development Financial Institutions (CDFI) Fund.
The allocations are being made through the calendar 2022 round of the NMTC program.
“The New Markets Tax Credit plays a critical role in financing many vital businesses and community projects in our nation’s low-income communities,” said assistant secretary Graham Steele. “The investments that will result from today’s announcement will help preserve and create hundreds of thousands of jobs and spur economic growth in these urban, rural, and tribal communities across our country. It is important that Congress sustains these investments by making the New Markets Tax Credit permanent.”
The 102 community development entities receiving awards were selected from a pool of 197 applicants that requested an aggregate of $14.8 billion in tax credit allocation authority. The award recipients are headquartered in 36 states and the District of Columbia. Over 20% of the investments will be made in rural communities. It is estimated that these award recipients will make nearly $1 billion NMTC investments in non-metropolitan counties.
Approximately $4 billion of NMTC investment process will likely be used to finance and support loans to or investments in operating businesses in low-income communities, while about $877.5 million in NMTC investment proceeds are expected to be financed? and support real estate projects in low-income communities.
Several of the recipients are familiar names in affordable housing industry, including Cinnaire, Habitat for Humanity NMTC, IFF, The Community Builders CDE, Corporation for Supportive Housing, and Travois New Markets.
Cinnaire leaders said they plan to use their $60 million NMTC award to fund projects that support education, vocational training, and job opportunities across its footprint. Since 2009, Cinnaire is a 10-time allocation recipient, with awards totaling more than $534 million.
The Community Builders’ CDE was awarded a $25 million allocation. The award is the organization’s seventh, bringing its total amount received to $265 million. The Community Builders CDE has deployed about $208 million in previous awards to support 34 projects of various types across 11 states and Washington, D.C.
The latest round brings the total amount awarded through the NMTC program to more than $76 billion.
Through the end of fiscal 2022, award recipients had deployed more than $62.9 billion in investments in low-income communities and businesses, helping to create or retain more than 857,000 jobs and construct or rehabilitate nearly 239 million square feet of commercial real estate.
For more information about the latest allocation round, see the awards book.
