The the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced $7 billion in New Markets Tax Credits (NMTC) for both 2015 and 2016.
Nationwide, the Treasury awarded 120 organizations in 36 states, the District of Columbia and Puerto Rico the credit as part of the current awards announcement. The organizations can now raise funding they may not otherwise have access to without NMTC. The tax credits target economically distressed communities to help them attract private investment capital to fill project financing gaps.
“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.
Not Just for Major Metros
Places like Federal Way, Wash., will receive NMTC that will help pay for a $33.18 million performing arts and events center.
This is an incredibly positive step in our efforts to receive these funds and we’re very heartened that Clearinghouse Community Development Financial Institution received allocations of $65 million,” Mayor Jim Ferrell told the Federal Way Mirror.
He added that the city received commitments of allocations if they were to be awarded NMTC tax credits.
Exciting news for @WAFederalWay regarding @CDFIFund and #NMTC. Check out today’s article @fwmirror https://t.co/BsaiNiWwvm
— Mayor Jim Ferrell (@WAFederalWay) November 18, 2016
Addressing Critical Community Needs
The number of minority-owned or controlled organizations receiving awards nearly tripled from last year, according to the Treasury.
Since 2001, the tax credits have generated more than $42 billion in investments, resulting in the creation or retention of more than 500,000 jobs and the construction or rehabilitation of more than 164 million square feet of commercial real estate.
Projects like the Conway Center in Washington, D.C., will host adult job training, provide affordable housing to 30 homeless and low-income families and 172 homeless and low-income people and facilities that provide 10,000 women and children medical and dental care, according to NextCity.Download the 2015-2016 NMTC award book to see what organizations and which cities received funding.
