The U.S. Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund) announced more than $3.5 billion in New Markets Tax Credit awards aimed at stimulating investment and economic growth in low-income urban neighborhoods and rural communities nationwide. A total of 76 organizations across the country that will receive tax credit allocation authority under the 2014 round of the New Markets Tax Credit Program.
NH&RA members received the following allocations:
- Bank of America CDE, LLC: $75 million
- CapFund New Markets LLC (Great Lakes Capital Fund): $55 million
- CCG Community Partners, LLC (Cityscape Capital Group): $55 million
- Citibank NMTC Corporation: $55 million
- Commonwealth Cornerstone Group (Pennsylvania Housing Finance Agency): $45 million
- ESIC New Markets Partners LP (Enterprise Community Investment): $45 million
- Local Initiatives Support Coalition: $70 million
- MBS Urban Initiatives CDE, LLC (McCormack Baron Salazar): $55 million
- Mid-City Community CDE, LLC: $40 million
- National Trust Community Investment Corporation: $45 million
- RBC Community Development, LLC: $50,000,000
- The Community Builders CDE LLC: $40,000,000
- USBCDE, LLC (US Bank): $55 million
2014 New Markets Tax Credit Program Award Resources
Award Book: View award list and learn key facts and statistics about the Allocatees
Searchable Award Database: View the profiles of individual Allocatees
States Served Map: Explore the service areas of recent Allocatees
The New Markets Tax Credit Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a non-refundable tax credit against federal income taxes for making equity investments in vehicles known as Community Development Entities (CDEs). Since the program’s inception, New Markets Tax Credit investments are estimated to have created nearly 600,000 new jobs and supported the construction of more than 160 million square feet of retail, manufacturing, and office space. As the communities benefitting from these investments develop, they become more attractive to investors, creating a ripple effect that spurs more investment.
CDEs that receive the tax credit allocation authority under the program are domestic corporations or partnerships that provide loans, investments, or financial counseling in low-income urban and rural communities. The tax credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. The CDEs in turn use the capital raised to make investments in low-income communities. CDEs must apply annually to the CDFI Fund to compete for New Markets Tax Credit Program allocation authority. The 76 organizations receiving awards were selected from a pool of 263 applicants that requested approximately $19.9 billion in allocation authority. They are headquartered in 27 different states and the District of Columbia, and collectively, these organizations will support investments across the nation.
