New Markets Tax Credit Receives One-Year, $5 Billion Extension

Contact: Ayrianne Parks, [email protected], (202) 393-5225

Spending Bill Expected to be Signed Into Law Today Authorizes $1.5 Billion Increase in Allocation

WASHINGTON, D.C. (December 20, 2019) – The Fiscal Year 2020 appropriations bill , H.R. 1865, which will signed into law today by President Trump, includes a one-year, $5 billion extension of the New Markets Tax Credit (NMTC). The NMTC, which faced expiration on December 31, instead received a $1.5 billion increase in allocation that will go far to meet the demand for this important resource that revitalizes communities, creates jobs, increases economic opportunity and improves lives. 

The projected impact of $5 billion in New Markets Tax Credits includes an estimated 138 manufacturing and industrial projects, 55 mixed-use projects, 51 health care projects and 115 community facility projects. It will also generate an estimated 118,000 jobs.

Established in 2000 in the Community Renewal Tax Relief Act (P.L.106-554), the New Markets Tax Credit is a bipartisan effort to stimulate investment and economic growth in low-income urban neighborhoods and rural communities. Since then, the New Markets Tax Credit has financed more than 6,000 projects and created over one million jobs in all 50 states, the District of Columbia and Puerto Rico. The NMTC was provided a five-year authorization in The PATH Act. (P.L. 114-113) in December 2015.

“As we celebrate the 20th anniversary of the New Markets Tax Credit in 2020, this extension and additional allocation for the next year is vital for many of America’s urban neighborhoods and rural communities, providing access to billions of dollars for high-impact, community revitalization projects,” said Bob Rapoza, spokesperson for the NMTC Coalition. “No other the federal tax incentive is generally available to economically distressed rural and urban communities to promote economic revitalization. We appreciate our champions in Congress who worked to introduce the extension into the spending package, including Sens. Roy Blunt (R-MO) and Ben Cardin (D-MD) and Reps. Terri Sewell (D-AL), Tom Reed (R-NY), who introduced legislation last February to make the NMTC permanent.  We also are grateful to Ways and Means Committee Chairman Richard Neal (D-MA) who is a longtime supporter of NMTC.”

The NMTC works by providing a shallow federal tax credit of 39 percent, taken over seven years, for investments made in census tracts where the individual poverty rate is at least 20 percent or where median family income does not exceed 80 percent of the area median. In 2019, more than 80 percent of all NMTC investments were in communities exhibiting severe economic distress with extremely low-incomes, high unemployment, or high poverty.

“The NMTC, despite its impressive track record in revitalizing communities, has been set at $3.5 billion since 2007, resulting in a 30 percent decrease in buying power. The $5 billion authorization is not only an increase above the current rate for NMTC from $3.5 billion, but also an increase above inflation of over $500 million,” adds Rapoza. “This much needed increase will go far to meet the exceptionally high demand, with is four to five times the availability on average.”

The Coalition notes that communities have come to count on the NMTC as a source of low-cost capital for challenging projects that would not have been possible but-for the NMTC. Since its inception, the Credit has delivered well over $100 billion in flexible capital to farming towns and urban neighborhoods left outside the economic mainstream.

For examples of how the NMTC is making an impact in each state, see the NMTC Coalition’s State Impact Map or check out its Project Database.

About New Markets Tax Credit Program

The New Markets Tax Credit (NMTC) was enacted in 2000 in an effort to stimulate private investment and economic growth in low-income urban neighborhoods and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies. Since its inception, the NMTC has generated more than one million jobs. Today due to NMTC, more than $100 billion is hard at work in underserved communities in all 50 states, the District of Columbia, and Puerto Rico. For more information, visit www.NMTCCoalition.org.

Tax Policy Trends and Plans for 2020 Were Focus for Lawmakers, Community Development Leaders at Annual D.C. Policy Conference

Coalition gathers NMTC stakeholders, releases state statistics


WASHINGTON, Dec. 16, 2019 /PRNewswire/ — New Markets Tax Credit extension legislation, tax policy trends and plans for 2020 were the focus as the New Markets Tax Credit (NMTC) Coalition held its annual NMTC Policy Conference late last week in Washington, D.C. The two-day event featured several members of Congress as keynote speakers, included visits with Congressional offices on Capitol Hill and provided insights from the Treasury Department. Attendees also received updated state fact sheets on the NMTC’s efficacy.

NMTC Coalition President, Kermit Billups, kicked off the conference by welcoming speakers and guests alike. The experienced NMTC practitioner and Greenline Ventures Executive Vice President highlighted recent successes and looked to the future of the NMTC Coalition.

Keynote speakers included Comptroller of the Currency Joseph Otting and CDFI Fund Director Jodie Harris. Panelists included congressional staff, NMTC board and leadership, economic development experts and Treasury Department professionals. Panels held discussions on modernization of the Community Reinvestment Act, small business loan funds, and the latest insights from the Treasury Department. A legislative outlook panel was led by moderator Bob Rapoza, NMTC Coalition spokesman.

A key focus of the conference was the expiration of NMTC. At the end of the year, the Credit expires, and the Coalition has been working with Congress on the legislation to extend and expand the NMTC.  In November, nearly 1,000 organizations wrote to the Congressional leadership in support of extension legislation.

Attendees brought their message to the Hill for Congressional visits before settling into the Hart Senate Office Building where they were addressed by Senator Roy Blunt (R-MO), Senator Ben Cardin (D-MD) and Ways and Means Committee Chairman, Representative Richard Neal (D-MA) who discussed NMTC and the future of tax policy.

“We [Congress] have to buckle down and get things done,” said Sen. Blunt, noting that he is working with fellow NMTC bill cosponsor Sen. Cardin and members of the Senate Finance Committee on an extension for the NMTC in the year-end negotiations. He went on to discuss his firsthand experience seeing the NMTC at work. “I went to a grocery store opening in south St. Louis—it was the first grocery store in 50 years, and the NMTC provided the financing.”

“You can’t allow it to expire,” said Sen. Cardin, when addressing the group and noting the chilling impact already seen due to uncertainty over the extension of the NMTC. “Permanency allows you to be able to go out and put together these deals that are not easy to be put together. There is a real desire by both the Democratic and Republican leadership to make sure that an extender package, in fact, passes before the end of the year. We are going to keep fighting for as much as we can get,” he added.

“[The NMTC] has real, positive ramifications for the communities in which you make the investment,” said Chairman Neal as he talked about “why we need to preserve and expand the New Market Tax Credit initiative. I’ve been your champion and I’m going to continue to be your champion,” he added.

The NMTC Coalition also released updated state fact sheets with community testimonials, success stories and state statistics available here.

“Since it was established in 2000, the New Markets Tax Credit has financed more than 6,000 projects and created over one million jobs in all 50 states, the District of Columbia and Puerto Rico,” said Bob Rapoza. “The conference provided practitioners with opportunities to discuss ways to build upon its success, helping low-income rural and urban communities access the capital necessary to grow local economies, expand business opportunities, update worn infrastructure, and make needed services like healthcare, education and childcare available to individuals and families living in distressed areas.”

About New Markets Tax Credit Program

The New Markets Tax Credit (NMTC) was enacted in 2000 in an effort to stimulate private investment and economic growth in low-income urban neighborhoods and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies. Since its inception, the NMTC has generated more than one million jobs. Today due to NMTC, more than $95 billion is hard at work in underserved communities in all 50 states, the District of Columbia, and Puerto Rico. For more information, visit www.NMTCCoalition.org.

Contact: Ayrianne Parks
[email protected] 
(202) 393-5225

Multitude of Organizations Urge Congress to Save Soon-to-Expire NMTC

Nearly 1,000 businesses, investors and organizations call on Congress to expand and make the community and economic development tax credit permanent

WASHINGTON, November 20, 2019 – Today, the New Markets Tax Credit (NMTC) Coalition sent a letter addressed to Congressional leadership, the House Ways and Means Committee and its Chairman, Richard Neal (D-MA), as well as to the Senate Finance Committee and its Chairman, Chuck Grassley (R-IA). The letter urges the permanent extension and expansion of the New Markets Tax Credit (NMTC), along the lines of the bipartisan New Markets Tax Credit Extension Act (H.R. 1680 S. 750).

Nearly 1,000 signatures came from banks and credit unions; nonprofits such as Habitat for Humanity chapters, YMCAs, Boys & Girls Clubs,  food banks and heath care clinics; businesses, ranging from very large businesses to small, family-owned operations; city governments; state and local elected officials and agencies; and associations that represent thousands of members.

“As the New Markets Tax Credit nears its expiration at the end of 2019, we hope Members will take note of its broad support,” said Kermit Billups, President of the NMTC Coalition and EVP, Co-Founder at Greenline Ventures. “The letter was signed by nearly a thousand organizations, representing all 50 states, Washington, D.C. and Puerto Rico, and located in every type of community, from rural areas to urban neighborhoods, and everywhere in between. Why? Because they have seen firsthand the success of NMTC in revitalizing communities, creating jobs, increasing economic opportunity and improving lives.”

Established in 2000 in the Community Renewal Tax Relief Act (P.L.106-554), the New Markets Tax Credit is a bipartisan effort to stimulate investment and economic growth in low-income urban neighborhoods and rural communities. The NMTC was most recently provided a five-year authorization in The PATH Act. (P.L. 114-113) in December 2015. There is great bipartisan support for NMTC in Congress:  32 Senators signed on in support of S. 750, which was introduced by Senators Roy Blunt (R-MO) and Ben Cardin (D-MD); in the House, H.R. 1680 has 109 cosponsors, led by Reps. Terri Sewell (D-AL), Tom Reed (R-NY), and 24 members on the Ways and Means Committee.

The NMTC works by providing a shallow federal tax credit of 39 percent, taken over seven years, for investments made in census tracts where the individual poverty rate is at least 20 percent or where median family income does not exceed 80 percent of the area median. Last year, more than 80 percent of all NMTC investments were in communities exhibiting severe economic distress with extremely low-incomes, high unemployment, or high poverty. Over the past 15 years, communities have come to count on the NMTC as a source of low-cost capital for challenging projects that would not have been possible but-for the NMTC. Since 2003, the Credit has delivered well over $100 billion in flexible capital to farming towns and urban neighborhoods left outside the economic mainstream.

“Despite an exemplary track record in revitalizing some of the poorest communities in our country, financing over 6,000 businesses, hospitals, daycare facilities, and manufacturing expansions and creating some one million plus jobs, the future of the NMTC is in jeopardy ,”  said Bob Rapoza, spokesperson for the NMTC Coalition.  “Without an NMTC extension, many of America’s urban neighborhoods and rural communities, struggling with high rates of poverty and unemployment, will lose access to billions of dollars for high-impact, community revitalization projects. No other the federal tax incentive is generally available to economically distressed rural and urban communities to promote economic revitalization making a permanent extension and expansion of the New Markets Tax Credit vital.” 

For examples of how the NMTC is making an impact in each state, see the NMTC Coalition’s 2019 NMTC Progress Report, State Impact Map or check out its Project Database.

Contact: Ayrianne Parks
[email protected] 
(202) 393-5225

The Letter

November 20, 2019,

Speaker Pelosi, Leader McConnell, Leader McCarthy, Leader Schumer, Chairman Neal, Chairman Grassley, Ranking Member Brady, and Ranking Member Wyden:

The New Markets Tax Credit (NMTC) expires at the end of 2019. We write to urge you to provide a permanent extension and expansion of the NMTC along the lines of the bipartisan New Markets Tax Credit Extension Act (H.R. 1680 and S. 750).

The NMTC is an important source of financing for businesses and community facilities in America’s most economically distressed rural and urban communities. Over the past 15 years, communities have come to count on the NMTC as a source of low-cost capital for challenging projects that would not have been possible but-for the NMTC. Since 2003, the Credit has delivered well over $100 billion in flexible capital to farming towns and urban neighborhoods left outside the economic mainstream. Those investments have generated over one million jobs at a cost to the federal government of less than $20,000 per job.

Without an NMTC extension, many of America’s urban neighborhoods and rural communities, struggling with high rates of poverty and unemployment, will lose access to billions of dollars for high-impact, community revitalization projects. For these reasons, we urge Congress to provide a permanent extension and expansion of the New Markets Tax Credit.

Signed,

Testimonials about the NMTC from signatories

Ted Wysocki, CEO, Institute of Cultural Affairs, Chicago, IL

Our Chicago Land-marked building provides affordable space to 20+ non-profit tenants who serve over 1,000 low-income individuals weekly. NMTC will enable us to restore our vintage building and increase its energy efficiency for years to come in assuring our community’s diversity.

Amy Mallory, Manager, Fund Management, CAHEC, Raleigh, NC

The NMTC program create jobs, strengthens communities and provide life-changing opportunities to people which would not exist if it was not for the NMTC program. It makes a difference!

Christopher Burnham, President, Development Finance Authority of Summit County Ohio, Development Finance Authority of Summit County Ohio, OH

It helps us bring private investment capital into projects that otherwise would not be financially achievable.

Randy Shaffer, CEO/Superintendent, Trinity Basin Preparatory, Grand Prairie, TX

The NMTC program saves us valuable dollars so that we can put more money in the classroom for our predominantly minority, high poverty students. The program is vital and I respectfully request that you extend this wonderful program.

Cathy Phan, Business Development Coordinator, Asian American Health Coalition dba HOPE Clinic, Houston, TX

The NMTC gives us the opportunity and sustainable funding to truly make an impact in the most vulnerable communities. Without the support of NMTC, communities that need the most help may get left behind, or worse, pushed out without any real solution to improving the community.

Jeffrey Monge, Managing Partner, Monge Capital, Newark, NJ

The NMTC programs help create sustainable social and economic impact for communities representative of the community I was born and raised in the Bronx. Also, it is a unique opportunity for MBE firms like mine to “do good and well” based on our knowledge of the industry and our knowledge of the markets we serve.

Kevin Smith, CEO, Habitat for Humanity of New Castle County, Wilmington, DE

The NMTC leverages resources to produce more affordable housing and change for low-income communities

Javier Lopez, Director of Community Relations, Coachella Valley Housing Coalition (CVHC), Indio, CA

The NMTC means a great deal to our organization and the communities we serve. We have over 35 years developing affordable housing for our working families, farm workers, migrant farm workers, seniors, and veterans. This credit has allowed organizations like CVHC to continue providing the American Dream of homeownership to thousand of individuals and families who could not otherwise have a roof over their heads. Therefore, the Coachella Valley Housing Coalition is proud to join others in urging Congress to provide a permanent extension and expansion of the New Markets Tax Credit.

Audrey Roling, CFO, YMCA of Greater Louisville, Louisville, KY

The NMTC program has increased the impact that the YMCA is having on the west Louisville community, bringing health equity outcomes to citizens who need it most.

David S Murnen, Executive Director/CEO, NeighborWorks of Grays Harbor County, Aberdeen, Wa

Our rural service area has been left out of the tremendous economic growth experienced by our neighboring urban counties, yet we are the closest deep-draft port to Asian markets. What we do share with the other counties is the lack of affordable housing causing a desperate spiral into the abyss of homelessness, addiction, expensive incarceration and excessive use of hospital ER services. The availability of tax credits is likely the only incentive to attract developers to build housing people can afford to live in, thus avoiding these other negative outcomes. Safe, affordable housing is the key to good health, education, and employment whether urban or rural. The difference is that rural has far fewer financial solutions available to address this issue. Do the math- affordable housing is far cheaper than jail or hospitalization-Vote for maintaining tax credits that actually serve all of us by being the less expensive option to the taxpayer.

Peter Mello, Managing Director and coCEO, WaterFire Providence, Providence, RI

New Market Tax Credits were critically important to WaterFire Providence in creating the WaterFire Arts Center which is transforming the underserved Valley/Olneyville neighborhood of Providence into a vibrant arts corridor.

Michelle Seychel, Manager, Pine Lake Apartments, Waterford, MI

I have been managing LIHTC communities for the past 4 years. I have seen this program help so many low-income families get back on their feet. Not every family can afford to pay top dollar for rent, nor can they afford high move-in costs. The lower yearly rental increases help families stay in their homes for long periods of time. This means stability for them, stability is very important for children. When a child has to move every year because their parents cannot afford the rent is a very hard transition. I hope this program stays around for a very long time.

Ann Hannan, Administrative Director, Smith NMTC Associates, LLC, St. Louis, MO

Since 2008, Smith NMTC has supported nonprofit developers in utilizing NTMCs to provide critical affordable homeownership opportunities and increased community services in struggling communities. With transactions in over 30 states, this work has resulted in the development of nearly 4,000 homes in low-income communities, as well as community facilities including credit unions, early childhood centers, youth camp facilities and an community empowerment center. Without the NMTC allocation, these projects would lack the needed capital to meet targeted outcomes/schedules.

Sally Hazelip, Head of School, North Florida School of Special Education, Jacksonville, FL

The NMTC helped us complete the funding we needed to build a 32,000 sq.foot lower school campus/urban equestrian center for children who have intellectual and developmental differences. This will enable us to provide academic resources not only to our students but will serve as a therapeutic recreation center to our community. NMTC has been a gift to the Jacksonville Community!

Melissa Marshall, MD, Chief Executive Officer, CommuniCare Health Centers, Davis, CA

The New Markets Tax Credit program is one of the most important sources of financing for Community Health Centers, like CommuniCare Health Centers. In the past 15 years, the NMTC has delivered nearly $6 billion to over 300 FQHCs along with hundreds of hospitals and treatment centers in low-income communities. If you let the NMTC program expires at the end of the year, FQHCs will miss out on nearly $700 million in annual financing. This will directly impact our ability to serve our most vulnerable community members. We urge your support.

Demond Wilkerson, Managing Member, Modern Commercial Capital Institute (Bronx), Bronx, NY

It’s a tremendous aid in providing access to affordable Capital in low-income communities and as a benefit for MWBE Development and businesses

Sam Walls III, President, Arkansas Capital and Heartland Renaissance Fund, Little Rock, AR

As a predominantly rural state, the NMTC has absolutely been the key piece in putting together capital stacks for projects in underserved areas. There is no substitute mechanism/tool that could replace the NMTC is the work that we do.

Jeffrey Mishkin, President, LJSM, Inc., Saint Louis, MO

The NMTC provides a way for developers to improve the live, work and play areas which are vital to a thriving community and to an enhanced region.

Christy Acord, Executive Director, Elmore County Rural Development, Elmore County, ID

New Market Tax Credit’s are one of the tools that help drive the economic development in the communities that we serve. Preservation of this essential tool for economic development is a key for the future of the economic growth in our expanding region.

Kji Kelly, Executive Director, Historic Seattle, Seattle, WA

The NMTC has been, and hopefully will continue to be, a major source that enables Historic Seattle to save meaningful places that foster lively communities.

NMTC Coalition Releases 2019 NMTC Progress Report

The 15th edition of the NMTC Progress Report shows the NMTC continues to grow businesses and create jobs in rural and urban communities left outside the economic mainstream. 

FOR IMMEDIATE RELEASE — WASHINGTON, D.C. (July 18, 2019) —The New Markets Tax Credit Coalition today released its 2019 New Markets Tax Credit (NMTC) Progress Report, the fifteenth edition of the report—providing analysis of NMTC activities in 2018. The report documents the importance of the NMTC in providing patient, flexible capital to businesses and projects located in distressed rural and urban communities, thereby  creating  jobs and growing business opportunities. The NMTC financing ranges from more traditional industry and community sectors to new and cutting-edge technology. Projects and businesses that benefited from the Credit in the past year include manufacturing, healthcare, schools and many supporting childcare, youth, and families.  

“The Coalition’s annual survey asks CDEs to report on the deployment of their allocation, investor trends, and a variety of community impact metrics,” said Coalition spokesperson Bob Rapoza. “The findings clearly demonstrate that the NMTC continues to deliver capital to the communities left behind by the changing economy, with nearly 80 percent of the activity in severely distressed U.S. census tracts in the last year—far exceeding statutory requirements. Moreover, the Credit is delivering a significant ‘bang for the buck’ for taxpayers in terms of the jobs, amenities, community facilities, and tax revenue.”   

The report was prepared for the NMTC Coalition, a national membership organization of Community Development Entities (CDEs) and investors organized to advocate on behalf of the NMTC. Every year since 2005, the NMTC Coalition surveys CDEs on their work delivering billions of dollars to businesses, creating jobs, and rejuvenating the parts of the country that have been left behind. The annual NMTC Progress Report presents the findings of the CDE survey and provides policymakers and practitioners with the latest trends and successes of the NMTC.

The 2019 Progress Report

Seventy-four CDEs participated in the 2019 survey and provided data on their progress raising capital, lending, and investing in 2018 with the NMTC. The survey findings show that competition for credits continues to drive gains in efficiency.  The data collected shows that CDEs used $3.2 billion in NMTC allocation in 2018 to financed 286 NMTC projects, amounting to $6.1 billion in total project investment to low-income communities. This financing resulted in the creation of 58,360 total jobs including 32,917 permanent full-time-equivalent jobs and 25,443 construction jobs.

“Year after year, the data shows the NMTC not only delivers an unprecedented level of capital to low-income rural and urban communities, but it creates much-needed jobs—helping individuals and families thrive and, in turn, grows those local economies where they live and work. In fact, since 2003 the NMTC has created over one million jobs,” Rapoza adds.

Across 48 states and territories, CDEs rehabilitated or constructed 18.9 million square feet of space in 2018, thanks to NMTC financing. NMTC financing supported 193 manufacturing and industrial businesses with loans for working capital, new equipment, and 6.7 million sq. ft. of new space, often through incubators and multi-business facilities, creating over 12,000 manufacturing jobs.

Furthermore, there were four million people served by NMTC-financed community facilities including 445,000 patients in healthcare facilities and 460,000 children. Sixty-six percent of mixed use (?) projects included at least one community facility, nonprofit, or social service component. Those new community resources add up to 249 nonprofits facilities, health centers, childcare centers, libraries, community centers, and other community facilities.  The report profiles NMTC financed businesses, including a rural apparel manufacturer in Pagosa Springs, CO, a new Educare facility in Springfield, MA, and a Boys and Girls Club in Manatee County, FL, and it describes the impact of the NMTC in native communities in 2018.

Rapoza notes, “The authorization for the NMTC expires this year. This report is further proof that the Credit is working and Congress should expand and make the NMTC permanent.”

There is currently legislation in Congress aimed at making the NMTC permanent, The NMTC Extension Act of 2019, H.R. 1680 in the House and S. 750 in the Senate. There are presently 30 Senators signed on in support of S. 750, which was introduced by Senators Roy Blunt (R-MO) and Ben Cardin (D-MD). H.R. 1680 has 91 cosponsors, and is led by Reps. Terri Sewell (D-AL) and Tom Reed (R-NY).


About New Markets Tax Credit Program The New Markets Tax Credit was enacted in 2000 in the Community Renewal Tax Relief Act (P.L.106-554) in an effort to stimulate private investment and economic growth in low-income urban neighborhoods and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies. The NMTC is a 39 percent federal tax credit, taken over seven years, on investments made in economically distressed communities. More than $95 billion in capital has been put to work in underserved communities in all 50 states, the District of Columbia, and Puerto Rico.

Treasury’s CDFI Fund Announces 2018 NMTC Awards

WASHINGTON, D.C. (May 23, 2019)– The U.S. Department of the Treasury’s CDFI Fund announced the Calendar Year 2018 New Markets Tax Credit (NMTC) allocation awards today. The CDFI Fund awarded $3.5 billion to 73 Community Development Entities (CDEs) from 35 states, Puerto Rico, and the District of Columbia.

“The federal New Markets Tax Credit is a unique and flexible community development tool with a successful track record, attracting investment capital and boosting economic activity in low-income areas,” said Bob Rapoza, spokesman for the NMTC Coalition. “In fact, the NMTC has leveraged an unprecedented level of investment to low-income communities—generating over $90 billion in total capital investment through public-private partnerships that created more than one million jobs.”

The CDFI Fund indicated 214 CDEs applied for allocations for a total demand of nearly $14.8 billion in credits. With 73 successful applications (34 percent) receiving $3.5 billion, meaning  the availability of credits only meets a fraction of the demand.

Established in 2000 in the Community Renewal Tax Relief Act (P.L.106-554), the New Markets Tax Credit is a bipartisan effort to stimulate investment and economic growth in low-income urban neighborhoods and rural communities. The NMTC provides a shallow federal tax credit of 39 percent, taken over seven years, for investments in census tracts where the individual poverty rate is at least 20 percent or where median family income does not exceed 80 percent of the area median. However, 75 percent of NMTC activity is in the poorest rural and urban communities in America, characterized by poverty of at least 30 percent and unemployment rates 1.5 times that the national average . Moreover, a recent independent report commissioned by the CDFI Fund to evaluate the operation and outcomes of the NMTC program found that CDEs are meeting and generally exceeding NMTC Program requirements.

To date, the NMTC financed about 6,000 projects, including more than 2,000 community services and facilities, such as hospitals, schools, daycare centers and non-profit service providers – all in areas that weren’t able to provide access to residents before NMTC was invested. As a result, the 17 million patients have been treated in NMTC-financed healthcare projects, and nearly 250,000 students and children attend NMTC-financed schools or receive care in early childhood learning centers.

The NMTC was most recently provided a five-year authorization in The PATH Act. (P.L. 114-113) in December 2015. There is currently legislation in Congress aimed at making the NMTC permanent, The NMTC Extension Act of 2019, H.R. 1680 in the House and S. 750 in the Senate. There are presently 20 Senators signed on in support of S. 750, which was introduced by Senators Roy Blunt (R-MO) and Ben Cardin (D-MD). H.R. 1680 has 75 cosponsors, led by Reps. Terri Sewell (D-AL) and Tom Reed (R-NY).

“The NMTC is a great deal for the federal government, leveraging  eight dollars in other investments in communities  for every dollar in credits. But, most importantly, the NMTC is a critical tool for our country’s small, overlooked rural towns and blighted urban neighborhoods that have been left outside of the economic mainstream for far too long. One-fifth of the 2018 awards will be made in rural communities, with $682 million in NMTC investments going to revitalize non-metropolitan counties,” said Rapoza.

For examples of how the NMTC is making an impact in each state, see the NMTC Coalition’s NMTC at Work in Communities report or check out its Project Profile Map.

New Markets Tax Credit Coalition Hosts April 2019 Fly-in, Congressional Briefing

Yesterday, on April 9th, the nation’s leading community development entities met with nearly one hundred Members of Congress and their staffs to discuss the advancement of bills introduced in the House and Senate in February  that  make permanent and expand the New Markets Tax Credit. The fly-in, hosted by the New Markets Tax Credit Coalition, included a briefing with keynotes from the House bill’s lead sponsors, Reps. Terri Sewell (D-AL) and Tom Reed (R-NY), and remarks by Reps. Jason Smith (R-MO) and TJ Cox (D-CA). The special gathering of legislators, congressional staff and NMTC practitioners from across the country was held in the House Ways and Means Committee Room. “There are issues in Washington that are truly bipartisan, especially around efforts to spur revitalization in economically distress areas, so I’m a proponent of the New Markets Tax Credit,” said Rep. Sewell. “In my district, the NMTC has really made a big impact. I’m confident that when my colleagues realize all the benefits of the program, we will pass this legislation overwhelmingly.” ”We’ve seen the New Markets Tax Credit deployed across the country,” said Rep. Reed. “The NMTC is a policy that has broad bipartisan support. It is a tool in the toolbox that is changing communities. It’s all happening with the NMTC.”
NMTC practitioners presenting on their work. (L to R: Joe Summers, Urban Action Community Development; Pat Sluder, MassDevelopment; Bill Dana, Central Bank of Kansas City; Aisha Benson, TruFund Financial Services; and Kermit Billups, NMTC Coalition President)
Additional speakers at the briefing included Kermit Billups, Chair of the NMTC Coalition Board and Executive Vice President of Greenline Ventures, emcee and panelists Aisha Benson, Executive Vice President, TruFund Financial Services; Bill Dana, President and CEO, Central Bank Of Kansas City; Pat Sluder, Vice President, MassDevelopment; and Joe Summers, Vice President, Urban Action Community Development. Following the panel of NMTC practitioners, Rep. Jason Smith (R-M) also addressed the briefing attendees.
(L to R) Reps. Sewell (D-Ala.), Smith (R-Mo.) and Reed (R-N.Y.) talk about their support for the New Markets Tax Credit during a recent industry coalition visit to Capitol Hill.
“I’m a huge supporter of the New Markets Tax Credit,” said Rep. Smith. “A lot of rural areas have persistent poverty, and the NMTC is a great program for us in helping them.” Established in 2000, in the Community Renewal Tax Relief Act (P.L.106-554), the New Markets Tax Credit is a bipartisan effort to drive economic growth in low-income urban neighborhoods and rural communities. Congress extended the NMTC for five years as part of The PATH Act. (P.L. 114- 113) in December 2015. As Congress and the Administration continue discussions around tax extender provisions post tax reform, organizations, businesses and communities that have seen the positive impact of the NMTC have increasingly urged Congress to make the credit a permanent part of the tax code. “Last Congress, over 125 members of Congress from both parties cosponsored NMTC extension legislation. The strong support of the New Markets Tax Credit was a direct result of the tangible impact it makes in distressed rural and urban communities that have been left outside the economic mainstream,” said Bob Rapoza, spokesperson for the NMTC Coalition. “The NMTC has generated over 1,000,000 jobs and delivered $90 billion in total capital investment through public-private partnerships. However, without legislative action, this effective tool for community revitalization will expire December 31st.” A majority of the members of the House Ways and Means Committee cosponsored NMTC extension legislation last session, and the new bill starts off with support from 20 members of the powerful tax-writing committee. U.S. Department of the Treasury data indicates that more than 72 percent of NMTC activity is in severely distressed communities with unemployment rates at least 1.5 times the national average or with poverty rates of at least 30 percent. In FY 2018 alone, the CDFI Fund, which administers the program at the Treasury, reported that the NMTC delivered nearly $4 billion in financing to 680 businesses, community facilities and economic revitalization projects. Communities put the capital to work, creating nearly 9,500 permanent jobs and almost 30,000 construction jobs in areas with high unemployment and poverty rates. For examples of how the NMTC is making an impact in each state, see the NMTC Coalition’s NMTC at Work in Communities report or check out its Project Profile Map.

Lawmakers, Community Development Leaders Gather in Washington, D.C. to Discuss Tax Policy Trends and Plans for 2019

Coalition gathers NMTC stakeholders for a policy conference, releases new state statistics

WASHINGTON, D.C. (December 18, 2018) — The New Markets Tax Credit (NMTC) Coalition held its Annual Conference on December 12 and 13 in Washington, D.C. The event featured members of Congress as keynote speakers, and panels on timely community development matters. Attendees were also provided with insights from the Treasury Department and the release of updated state statistics on NMTC efficacy.

NMTC Coalition President Kermit Billups opened the conference, welcoming speakers and guests. The experienced NMTC practitioner and Greenline Ventures EVP highlighted recent successes and looked to the future of the NMTC Coalition. Keynote speakers at the conference included U.S. Reps. Terri Sewell (D-Ala.) and Tom Reed (R-N.Y.). Both indicated their desire to work with House colleagues to see the NMTC not only extended, but made permanent and expanded.

“We have seen firsthand the impact the New Markets Tax Credit program has had here in New York and want to ensure it has a fair shot at continuing to boost jobs in our community,” Congressman Reed said. “While the economy continues to grow, small businesses – the lifeblood of our economy – still struggle to secure the capital needed to spur revitalization.”

“The New Markets Tax Credit helps create a better environment for businesses and transformative projects to thrive – boosting wages, services and economic development where it’s needed most,” Reed concluded.

A legislative outlook panel was led by moderator Bob Rapoza, NMTC Coalition spokesman, and included key congressional staff. Many attendees headed to congressional visits that afternoon, followed by a reception in the Kennedy Caucus Room where they were addressed by Senators Ben Cardin (D-Md.) and Rob Portman (R-Ohio), Senate NMTC Extension Act cosponsors and Senate Finance Committee members, who discussed NMTC impact and the future of tax policy.

Sen. Cardin said, “In Maryland, the New Markets Tax Credit has been deployed on a diverse range of infrastructure and community development efforts, from affordable housing, to health clinics, to community centers. Since 2003, the credit has resulted in billions of dollars in investment across the state and created over 34,000 jobs. It is time to make this incredibly valuable program permanent.”

Senator Rob Portman added, “Pro-growth federal policies are helping grow our economy and strengthen our communities. More than ever, we need to continue support for programs like the New Markets Tax Credit that spur investment in areas that truly need it and help create new industry, infrastructure, and jobs for cities and towns across the U.S. that have felt left behind. I’ve seen the results that these tax credits can have on our communities. Last year in Ohio, $280 million in New Markets Tax Credit financing generated a total of $462 million in public-private project investment for 29 projects in the state. Our local communities depend on these tax incentives for projects that transform our communities, create jobs, and make a real difference in peoples’ lives, and I’ll continue fighting to make them permanent.”

The final keynote of the conference came from Community Development Financial Institutions (CDFI) Fund Director Annie Donovan. At the close of her remarks, Donovan announced her departure from the CDFI Fund. During her five years as director, Donovan oversaw tremendous growth in the agency’s funding and programming and the largest ever CDFI and NMTC program award rounds. Integrating more data into policy-making was a top priority for Donovan.

Panels during the conference also included NMTC board and leadership, economic development experts and Treasury Department professionals. Those discussions focused on Opportunity Zones, NMTC investor prospects, NMTC financing disaster relief, and the latest insights from the Treasury Department.

“Since its inception, the New Markets Tax Credit has financed more than 5,000 projects and created over one million jobs,” said Bob Rapoza. “The conference provides practitioners with opportunities to discuss ways to build upon its success, helping low-income rural and urban communities access the capital necessary to grow local economies, expand business opportunities, update worn infrastructure, and make needed services like healthcare, education and childcare available to individuals and families living in distressed areas.”

Helping Beyond Thanksgiving: Investing in the Revitalization of Low-Income Communities

Thanksgiving is a time to gather with friends and family, a time to reflect on our privileges and the past year’s accomplishments and—most of us—also look forward to enjoying a big, festive meal.  Whether you host or travel to a loved one’s homes, many Americans will spend this Thursday gathered around a table, enjoying the comfort of a warm home and delicious food, and maybe even watching some football that afternoon. For those people living in poverty, struggling with homelessness, those affected by devastating natural disasters, or those without access to affordable, healthy food, the holiday can be quite a different experience.
L.A. Prep is a New Markets Tax Credit (NMTC) financed project in Los Angeles that will serve as an incubator for 50 small- to medium-sized food producers who have outgrown their startup spaces. The anchor tenant of the project is L.A. Kitchen, which is a commercial kitchen and produce processing hub that prepares meals and nutritious snacks for seniors and low‐income families.
According to the U.S. Department of Agriculture (USDA) Economic Research Service (ERS), “data from the latest census (2000), about 23.5 million people, or 8.4 percent of the U.S. population, live in low-income neighborhoods that are more than a mile from a supermarket. Low-income neighborhoods are areas where more than 40 percent of the population has income less than or equal to 200 percent of the Federal poverty threshold ($44,000 per year for a family of four in 2008).” A 2017 ERS report also found that “11.8 percent of American households were food insecure at least some time during the year in 2017, meaning they lacked access to enough food for an active, healthy life for all household members.” However, that number may be higher, depending on where you live. The January 2017 Point-in-Time count from the HUD Annual Homeless Assessment Report found that there are 553,742 people experiencing homelessness in the United States. Hundreds are without homes after the camp fire in California, and thousands are still dealing with hurricane damage from this year and last year. Many of us volunteer on Thanksgiving, serving food to individuals and families in need. But how can we help those less fortunate beyond a few hours spent volunteering on Thanksgiving? This is an issue central to the field of community and economic development. Since being implemented, the New Markets Tax Credit has been used across the country to help improve many of these challenges through the financing of food banks, grocery stores located in food deserts, homeless shelters and other community facilities that serve communities and people in need. Since 2003, the NMTC has financed 276 of grocery stores, farmers’ markets, food delivery services, food banks, and other projects expanding access to food in underserved areas.
NMTC practitioners like Habitat for Humanity, LISC, Greenline Ventures and many others in our community have been key in helping families repair and rebuild homes after hurricanes or providing financing to organizations like the Houston Food Bank and North Dallas Food Bank, which provided direct assistance to the families and communities affected by the unprecedented flooding and destruction of Hurricane Harvey and Irma. If we want to help, we need to get to the root of the problem and invest in programs that are focused on improving the lives of people and communities struggling with economic hardship. Helping organizations and businesses access the capital necessary to grow local businesses, expand community services and create good paying jobs is key and the NMTC has a strong record of accomplishing just that.

Let’s Ensure #InternetDay Keeps Getting People Connected

Post authored by NMTC Coalition Board Member Phil Glynn of Travois. Social media has given rise to many so-called “hashtag holidays” that spring up on Twitter, Facebook and Instagram each morning as we surf on our smartphones for news and updates from our friends. #NationalPizzaDay, #NationalSiblingsDay, #NoDirtyDishesDay. Many are entertaining, some are thought-provoking. Few, however, are critical. October 29th marks #InternetDay, and is among the exceptions. In just a few short decades, the internet has changed the way our communities interact and live, becoming an essential tool for education, healthcare and commerce. Many tech companies will take this opportunity to discuss new and emerging products and services they plan to bring to the market, but it’s also a day to consider those without access to broadband. And while most of our resources are being spent on the next generation of faster, more reliable digital access, many communities who still are waiting for the revolution to come to them. The Federal Communications Commission (FCC) 2018 report on Broadband found that approximately 14 million rural Americans and 1.2 million Americans living on Tribal lands still lack mobile LTE broadband at speeds of 10 Mbps/3 Mbps. One of the reasons for this divide is the expense of delivering such technology to rural and Tribal areas. Broadband supports more than just surfing the net. It is an important component of our healthcare delivery system. In remote areas with shortages in doctors and particularly specialists, broadband allows physicians and patients to consult with specialists through telemedicine. High-speed networks also help health professionals remotely monitor the vital signs of elderly or disabled patients living at home. Travois invests in housing, health care, education and infrastructure projects to create economic opportunity in Indian Country. In the tribal communities of Alaska, Travois worked to fill financing gaps in the development of phases of the Terrestrial for Every Region of Rural Alaska (TERRA) project. TERRA is a hybrid terrestrial fiber-optic and microwave network that removes the limitations of satellite and provides symmetrical broadband service to Alaska’s remote and rural regions. The TERRA network delivers critical bandwidth to numerous public, nonprofit and private entities such as regional health corporations, school districts, native organizations and residents. The build-out of the TERRA network is no small feat. Alaska is home to some of the most challenging geography in North America and regularly experiences unpredictable and unforgiving weather which can hamper construction. A majority of the communities that most need fast, reliable Internet are separated by vast distances and often can’t be reached by road. The TERRA projects have received key financing through the New Markets Tax Credit (NMTC). The NMTC was designed to increase the flow of capital to businesses and low income communities by providing a 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 program attracts capital to low income communities by providing private investors with a federal tax credit for investments made in businesses or economic development projects located in some of the most distressed communities in the nation – census tracts where the individual poverty rate is at least 20 percent or where median family income does not exceed 80 percent of the area median. Since its inception, NMTC investments have leveraged more than $80 billion in total capital investment to businesses and revitalization projects in communities with high rates of poverty and unemployment and has generated more than one million jobs. More importantly, the NMTC helps people in areas that are too often overlooked in favor of residents in more populous areas. Congress authorized the program as part of the bipartisan Community Renewal Tax Relief Act of 2000, and is funded through 2019. Without further action, however, the projects like TERRA have little chance ever coming to fruition. As we go online today, on #InternetDay, on our laptops, smartphones and tablets to read about the amazing things we can achieve through connectivity, let’s take a minute to consider those who still need to be brought into the fold, and how that can be achieved. Supporting more projects like TERRA, and preserving financing resources like the New Markets Tax Credit must be part of that thinking. Phil Glynn is president of Travois, headquartered in Kansas City, Mo., which provided funding to the TERRA project.

National Recovery Month: NMTC Financing Addiction Treatment in Under-Served Communities

September is National Recovery Month, which is sponsored by the Substance Abuse and Mental Health Services Administration (SAMHSA) to raise awareness of mental and substance abuse and celebrate recovery. The theme this year is Join the Voices for Recovery: Invest in Health, Home, Purpose, and Community. For the NMTC community, the focus on investment and community seems particularly applicable. The New Markets Tax Credit may not be the first financial tool that comes to mind for most, but it is in fact a resource that communities can use to help address the need for more treatment facilities.
Ribbon Cutting at Garlington Campus. Photo credit: Cascadia Behavioral Healthcare
There are a number of NMTC-financed addiction treatment centers around the country, which we have featured under the stories tab on the NMTC Coalition website. In addition to those facilities, the Cascadia Behavioral Healthcare’s Garlington Campus is the newest NMTC-financed addiction treatment facility. NMTC Coalition Board Member United Fund Advisors provided NMTC allocation for the project, which opened last Friday in Portland, Oregon. Cascadia describes the facility as “one of Oregon’s most innovative community-centered campuses – anchored by the new Garlington Health Center, which provides integrated health care services – mental health, substance use recovery, primary care, and wellness programs – all in one location to support a person’s whole health needs.” The project received $4.5 million in NMTC financing and includes a 24,000 square-foot clinic, providing mental health and addiction recovery services, primary care, neighborhood wellness programs, as well as 52 apartments. The drug addiction and overdose rate has soared historic levels, largely due to the opioid epidemic, which has ravaged communities and families living in small towns, urban cities, and everywhere in between. While there are many federal programs and other legislation aimed at specifically funding research and treatment, it is imperative that communities and leaders work together to use every resource available. The NMTC, with its flexibility and community-driven approach, can be a part of that equation, helping low-income, under-served areas build and deliver addiction and mental health services their communities’ currently lack.
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