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Dakotas America Hosts Rural Finance Gathering

Blog, Featured
Federal community development funding, as measured as a share of GDP, has declined by 75 percent over the least 40 years. Federal policy has increasing relied on private-sector resources to fill the gap. Through the NMTC and CDFI programs, community development organizations are filling the yawning credit gap encountered in many communities, creating jobs improving housing and community facilities and creating economic opportunity. This is especially true in rural America where opportunity to access the capital necessary to build businesses and community services is limited. On April 11, 2017, Dakotas America hosted the Upper Great Plains Rural Finance Gathering in Harrisburg, South Dakota. In all, there were over 30 attendees representing more than 20 economic development groups from across the region, as well as other areas around the country. The stated…
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Recent NMTC projects in Akron, OH and Bellows Falls, VT

Recent NMTC projects in Akron, OH and Bellows Falls, VT

Blog, Case Studies, Featured, Manufacturing
Chroma Technology, Bellows Falls, VT: The growth of Chroma Technology, a leading manufacturer of optical filters and related products, has far exceed their existing production capacity. Financing from MHIC will increase the company's manufacturing and research and development facility by over 150%. The prosperity of this company is extraordinarily vital to this very low-income community because it is employee-owned and, with profit sharing, most of the employees can earn approximately $100,000/year. This expansion project will result in 28 new hires within the next 5 years. Akron Community Revitalization Fund: Akron, OH The Akron Community Revitalization Loan Fund, which will be overseen by the Development Finance Authority of Summit County (DFA), is designed to provide small loans to help launch projects — everything from rehabbing buildings to opening new businesses —…
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New Markets Tax Credit Briefing Highlights Credit’s Success in Rural and Urban Communities

Blog, Featured
FOR IMMEDIATE RELEASE March 23, 2017 Contact: Ayrianne Parks ayrianne@rapoza.org (202) 393-5225 NMTC Practitioners Present on NMTC Projects that Leverage Private Investment in Economically Distressed Communities, Expand Businesses and Create Jobs Washington, D.C. –The NMTC Coalition hosted a briefing on Capitol Hill yesterday to share information on the impact of the New Markets Tax Credit (NMTC) in rural and urban communities. Leading the event was Robert W. Davenport, President of NMTC Coalition and Special Advisor to National Development Council.  Longtime NMTC champion and original cosponsor of the New Markets Tax Credit Extension Act of 2017 (HR 1098), Congressman Tom Reed, provided opening remarks. The event featured a video explaining the mechanics of the NMTC and four presentations by NMTC Coalition Board Members on projects from NMTC at Work in Communities Across…
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New Markets Tax Credit Talking Points

Blog, Latest News
The Coalition has internally compiled a list of arguments and talking points in favor of the NMTC, and we figured we'd share them with you on our blog (updated 3/2017) The New Markets Tax Credit (NMTC) was designed to increase the flow of capital to businesses and low income communities by providing a modest tax incentive to private investors. Over the last ten years, the NMTC has proven to be an effective, targeted and cost-efficient financing tool valued by businesses, communities and investors across the country. The NMTC has delivered an unprecedented level of investment to America's low income communities. Between 2003 and 2015, total project investments in NMTC qualified businesses totaled nearly $80 billion, of which 50 percent was generated from sources other than direct NMTC investments. Those NMTC investments…
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House and Senate Members Move to Make New Markets Tax Credit Permanent

House and Senate Members Move to Make New Markets Tax Credit Permanent

Blog, Featured, Uncategorized
Bipartisan Call to Make Federal Tax Credit Permanent that Leverages Private Investment in Economically Distressed Communities, Expands Businesses and Creates Jobs Washington, D.C. –Legislation was introduced in the House and Senate to secure the future of the New Markets Tax Credit (NMTC). Congressman Pat Tiberi (R-OH) and two colleagues on the House Ways and Means Committee, Congressmen Tom Reed (R-NY) and Richard Neal (D-MA), the Ranking Member on the committee, introduced the House bill. They were joined by 19 of their colleagues.  In the Senate, the bill was introduced by Senators Blunt (R-MO) and Cardin (D-MD). The bills, both titled The New Markets Tax Credit Extension Act of 2017, respectively H.R. 1098 and S. 384, would ensure that rural communities and urban neighborhoods left outside the economic mainstream have access…
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Some 2,000 Businesses, Banks and Nonprofits Call for New Markets Permanency

Blog, Featured, NMTC Extension Campaign, Sign-on Letters
Businesses, investors and organizations sign letter urging Congress to make the community and economic development tax credit permanent  Washington, D.C. –Today some 2,000 groups that have seen the New Markets Tax Credit at work in their communities sent a letter to Congress, calling on it to enact legislation that provides a permanent authorization and expansion of the NMTC. Signatures came from every state and included community development organizations; nonprofit service providers; banks and credit unions; state and national trade associations and chambers of commerce, including the American Bankers Association and other groups representing thousands of members; affordable housing organizations; schools, universities and education nonprofits; city governments, state and local elected officials and agencies; and many other businesses, ranging from very large businesses to small, family-owned businesses. “This broad support is…
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Several Senators Ask Treasury Secretary Nominee Mnuchin About the NMTC

Several Senators Ask Treasury Secretary Nominee Mnuchin About the NMTC

Blog, Hearings, Latest News
As is customary, members of the Senate Finance Committee submitted written questions to Treasury Secretary Steven Mnuchin following his confirmation hearing on January 19th. Senators Wyden, Cardin, Cantwell, and Brown probed the Trump Administration's interest in the NMTC in the context of both tax reform and Trump's interest in revitalizing low income urban neighborhoods and rural towns. Mnuchin did not commit one way or the other on the NMTC or other tax credits, as is expected at the beginning of a tax reform process, but rather, promised to review the NMTC and to ensure that tax reform benefits long-distressed communities. Below, find the written questions and Mnuchin's answers.  Senator Ron Wyden During the campaign, the President often expressed his intention to bring jobs and investment back to low income, high unemployment rural communities,…
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Super Round Analysis: Where is the Allocation Targeted?

Blog, Featured, Latest News
Last month, the CDFI Fund awarded $7 billion in NMTC allocation. Where will that allocation be deployed? We have a decent idea, thanks to new data on state targeting from the CDFI Fund. Heatmap of 2015/2016 Allocation Targeting The heatmap above shows where CDEs are targeting their 2015/2016 allocation. But it tells a misleading story, with high population states receiving more NMTC allocation. Rather than adjusting on a per capita basis, instead, I divided targeted amount of NMTC allocation by the number of NMTC eligible census tracts in a state (download the full dataset). That produces this reweighted heatmap. Adjusted Heatmap - States Targeted by 2015/2016 NMTC Allocation Round In the adjusted map, you can see that the top states are Arkansas, Hawaii, Idaho, Montana, Nevada, and Wisconsin. In fact,…
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