Six New Cosponsors of H.R. 1680

Today, Representatives Tim Ryan (D-OH), Jimmy Panetta (D-CA), Sharice Davids (D-KS), Peter DeFazio (D-OR), Trent Kelly (R-MS), and Jim Costa (D-CA) signed on as cosponsors of the NMTC Extension Act of 2019 (H.R. 1680). That brings us to 74 cosponsors plus Terri Sewell (D-AL). Below are some project examples from these members’ districts.

Tim Ryan (D-OH)

Renovation of the Youngstown YMCA

“What we’re able to do through the tax credit is provide construction jobs retain jobs in the city and be part of the renaissance of downtown Youngstown,” says YMCA CEO Tim Hilk. The project creates 19 permanent full time jobs and 50 construction jobs. 

Jimmy Panetta (D-CA)

Salud Para la Gente

Salud Para la Gente, a Federally Qualified Health Center in Watsonville, which provides high-quality, comprehensive, and cost-effective healthcare to its patient population of primarily Latino farm workers and low-income residents in the area. Northern California Community Loan Fund provided $8.6 million in NMTC financing to Salud Para la Gente to renovate and expand its main clinic in Watsonville, CA. The renovations added over 7,000 square feet of new space and 13 new medical exam rooms, one procedure room and four dental clinics.

Sharice Davids (D-KS)

El Rio Bravo Supermarket

El Rio Bravo Supermarket: Business financing for a grocery store in a severely distressed census tract with a poverty rate of 36%. Preserved 65 jobs and created 10 new full-time positions.

Peter DeFazio (D-OR)

Swanson Group Rebuild

From the ashes: Swanson to start production at new mill next week
via KVAL

NMTC financing helped the Swanson Group, a timber producer, rebuild a wood plant that was destroyed by a fire, displacing 250 workers.

Trent Kelly (R-MS)

Economic Development Partners Announce Major Revitalization Project in Fulton, Mississippi

Mueller Copper Tube is a global manufacturer and distributor of premium quality copper tube and pipe for plumbing, air conditioning, refrigeration, medical gas and other applications. Mueller is using NMTC financing to purchase equipment and expand its existing production facility in Fulton.

Jim Costa (D-CA)

Fresno Rescue Mission – Women’s and Children’s Shelter

The Fresno Rescue Mission (FRM) is a 501(c)(3) non-profit that serves impoverished families and neglected and abused children in the Central Valley. FRM’s Rescue the Children project transformed a rundown 108-unit motel into 68 units of housing and supportive services for homeless women and their children.

Selected NMTC Projects in Illinois 11th District

One Hope United’s Joliet Early Learning Center

One Hope United’s (OHU) Joliet Early Learning Center will open in March, thanks to an Illinois state grant and $15 million in new markets tax credits.

This new center is one of 12 One Hope United early childhood education programs in the Chicago metropolitan area offering a safe, nurturing, learning environment for children. Each center utilizes a unique “learn by doing” approach that allows children to explore and understand the world around them. All One Hope United centers are staffed by early childhood professionals who are passionate about developing lifelong learners.

Wayside Cross Ministries – Homeless Center

The NMTC provided financing to Wayside Cross Ministries for construction of a four story transitional housing, rescue mission and administrative office facility to be located at 215 E. New York Street, Aurora, Illinois.

Wayside Cross is a Section 501(c)(3) charitable organization. Its programs include: (i) the Master’s Touch Ministry which is a comprehensive 6-month residential, life transformation ministry for troubled men whose lives are out of control as a result of drugs, alcohol or some other destructive behavior pattern, (ii) the Lifespring Ministry which is a long term transitional living program for homeless women and women with children, who have lost their housing due to addiction, abuse or financial reasons, and (iii) the Urban Youth Ministry which is dedicated to empowering “at-risk” inner city youth, between the ages of 6 and 10, to reach their full God-given potential through focused educational, recreational, athletic, and other spiritual programs.

Arts center project to ‘help foster the arts in Aurora’

Work crews are beginning interior renovation this week of the former Waubonsee Community College building to remodel it into a downtown Aurora arts center.

The 80,000-square-foot building at Stolp Avenue and Galena Boulevard eventually will include a 25,000-square-foot school for performing arts, 8,000 square feet of rehearsal space for the Paramount Theatre, a 4,000-square-foot restaurant space, 38 apartments designed to support working artists and guest apartments for some Paramount Theater performers.

Supporting Hesed House’s Employment And Training Program

Hesed House is a 501c(3) under the Public Action to Deliver Shelter (PADS) program dedicated to alleviating the plight of poor and homeless persons. Its mission is to feed the hungry, clothe the naked, shelter the homeless, and give people a chance to hope again. Funds from the NMTC will allow 50 individuals to participate in the Hesed Employment And Training (HEAT) team, a job readiness and training program which provides trial jobs to homeless persons so they can master the “soft skills” needed in the workplace.

Recent NMTC Projects in Minnesota’s 4th District

Small business incubator, training center opens on St. Paul’s East Side

Dayton’s Bluff Neighborhood Housing Services of St. Paul, in partnership with Neighborhood Development Center (NDC), opened a small-business incubator and training center in the summer of 2017 at 809 E. Seventh St.

The primary focus is minority neighborhood entrepreneurs who own small and start-up contractor businesses.  Several open in the center, employing about 20 area residents. They include Green Light Architectural Sheet Metal, Everest Cleaning Systems, Ideal Commercial Interiors and Intown Sushi.

The facility also includes a YouthBuild training facility.

University Enterprise Labs

UEL financed a new addition with 19,500 additional sq. ft of available innovation space.

Dorothy Day Opportunity Center

In 2017, NMTC-financing supported the construction of a new 60,900 SF service center targeted to very low income and homeless individuals co-located with housing designed to transition people from homelessness to stability. The first two floors of the newly constructed six-story building consist: a 29,000 SF dining hall and community meeting space operated by Catholic Charities; a 22,400 SF computer lab and supportive service center operated by Catholic Charities, Ramsey County and a number of other service providers; a 5,700 SF health center and dental clinic to be operated by Westside; and 2,250 SF for another social service use to be determined after closing or operated as a social enterprise café. An additional 1,500 SF of storage space is located in the basement of the building.

The project will provide comprehensive support services for very low income and homeless individuals, including primary healthcare; dental care; mental and behavioral health services; adult education and workforce development programs; financial counseling; public benefits/entitlement services; community integration; housing placement services; meal service; and laundry and other personal care services/facilities. By integrating housing and services at the same site, it is expected that the project will provide the support necessary to achieve self-sufficiency and create true pathways out of poverty and homelessness. It allow Catholic Charities to better serve its clients by allowing it to consolidate its services in St. Paul to a single location and to expand services offered on-site by partnering with other service provider.

Open Cities Healthcare, Northend Clinic

Recognizing the need to expand services along the Rice Street corridor, Open Cities Healthcare purchased a building at 916 Rice and has renovated and opened its second clinic at this location. The facility at 916 Rice is 19,000 sq. ft. compared to the 7,500 sq. ft. at Rice and Manitoba, and allows the clinic to provide a greater number of services and serve an increasing number of individuals and families in need of affordable, quality health services.

Twin Cities Habitat for Humanity Headquarters

In 2012, the Twin Cities Habitat for Humanity was looking to build a new headquarters building to house its staff, coordinate volunteers and provide space for educational and advocacy programs. The new construction would be located in St. Paul, in a central location accessible by the city’s light rail transport system. The new facility would provide the organization with an enhanced base of operations through which it could offer more support to families in need. But that new capability would come at a cost: a total of $9.5 million would be needed to build the Twin Cities Habitat’s new home. And in making that investment, Habitat leaders were determined not to compromise the organization’s existing programs and services.

Groundbreaking took place in May 2013. The new headquarters facility, consisting of more than 27,000-square-feet of office and meeting space, was completed in early 2014. And true to Habitat for Humanity’s commitment to green building and making the most of recycled materials, it makes generous use of recycled windows, doors, carpets and other components.

Senator Blunt’s Statement on National Small Business Week

“There is more we ought to be doing. One thing we could have that a lot of small businesses could really benefit from is the New Markets Tax Credit Program. This is a program that was first authorized in 2000. It encourages investment in high-poverty areas or in low-income areas. Again, in Missouri, 42,000 new jobs have been created as a result of the New Markets Tax Credit Program. The other day, I went to the first new supermarket since 1968 in North St. Louis. This new supermarket opened because it was able to use the New Markets Tax Credit Program. It is a program we clearly need to extend. Once again, I and Senator Cardin, from Maryland, introduced that legislation, and we hope that can happen.”
Senator Roy Blunt, May 8, 2019, on the Senate Floor

Senator Daines to tour the future Billings Family Service facility today

Today Senator Daines (R-MT) is touring the future site of the Billings Family Service headquarters. The new facility is receiving NMTC-financing from MoFi. Learn more from KURL8. Features of the new facility include:
  • Tripling square footage resolving safety and efficiency issues
  • Expanded food box program for families,seniors and individuals
  • Creation of job training services
  • Expanded thrift store for more inventory and large item sales (furniture and appliances)
  • Improved client, donor, staff and volunteer experiences
Senator Daines has also signed on as a cosponsor of S. 750, the New Markets Tax Credit Extension Act.

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

FOR IMMEDIATE RELEASE ​​​​​​ March 12, 2019 Contact: Ayrianne Parks [email protected] (202) 393-5225 Bipartisan Call to Make Permanent the Federal Tax Credit that Leverages Private Investment in Economically Distressed Communities, Expands Businesses and Creates Jobs Washington, D.C. March 12, 2019 – Legislation was introduced in the House and Senate to secure the future of the New Markets Tax Credit (NMTC). Congresswoman Terri Sewell (D-AL) and Congressman Tom Reed (R-NY), introduced the House bill. In the Senate, the bill was introduced by Senators Roy Blunt (R-MO) and Ben Cardin (D-MD). The bills, both titled The New Markets Tax Credit Extension Act of 2019, would ensure that rural communities and urban neighborhoods left outside the economic mainstream have access to financing that stimulates economic growth and job creation. Established in 2000, in the Community Renewal Tax Relief Act (P.L.106-554), also called 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 to push 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.” 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 17 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 operates 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. House and Senate lawmakers have added their own perspective to the introduction of this legislation: “The New Markets Tax Credit is an essential tool for revitalizing rural and urban communities across the country, and is a proven, cost-effective incentive that spurs investment in areas by providing businesses with flexible, affordable access to financing. I am confident that extending the tax credit will continue to help attract new investment in Alabama’s 7th District. New Markets Tax Credits have helped spur a number of important projects in the 7th District, including financing the Entrepreneurial Center in Birmingham and transforming the Huyck Felt brick plant into a new wood pellet manufacturing facility in Aliceville, creating 275 jobs,” said Congresswoman Terri Sewell. “We care about boosting jobs here in New York and across the country, but unfortunately some small businesses – the backbone of our economy – still struggle to secure a fair amount of capital to spur revitalization. By creating a better environment for businesses we will see transformative projects to thrive – boosting wages, services and economic development where it’s needed most,” said Congressman Tom Reed. “The New Markets Tax Credit is a critical tool for encouraging new investment in areas that need it most. This program has a successful record of expanding economic opportunities and improving quality of life in areas across our state, whether it’s financing a training center for sheet metal workers in St. Louis or the first new grocery store in more than a generation in Pagedale. This program benefits families and local economies and urban and rural areas alike, and I urge all of our colleagues to support it,” said Senator Roy Blunt. “In Maryland, the New Markets Tax Credit has been deployed across our state on a diverse range of infrastructure and community development efforts, from an affordable housing project to provide apartments for educators and teachers in my home city of Baltimore, to a multicultural center for low-income minority families in Langley Park. I am pleased once again to be a supporter of this bipartisan legislation, which will create jobs and stimulate our economy in communities across Maryland and across America,” said Senator Ben Cardin. Senators Roy Blunt and Ben Cardin were joined by four original cosponsors, including Senators Chuck Schumer (D-NY), Rob Portman (R-OH), Tim Scott (R-SC) and Maria Cantwell (D-WA). In the House, Representatives Terri Sewell and Tom Reed were joined by Representatives Gwen Moore (D-WI), Earl Blumenauer (D-OR), Brian Higgins (D-NY), Suzan DelBene (D-WA), Bill Pascrell (D-NJ), John Larson (D-CT), Daniel Kildee (D-MI), Danny Davis (D-IL), Ron Kind (D-WI), Linda Sanchez (D-CA), Brad Wenstrup (R-OH), Jackie Walorski (R-IN), Mike Kelly (R-PA), Jason Smith (R-MO) and Darin LaHood (R-IL). 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. ###

Recent NMTC Projects – January 2019 Update

Below are a few NMTC projects closing or holding a ribbon cutting over the last few weeks.

American SpiralWeld Pipe Breaks Ground in Rural East Texas

The HWH Group, a full-service engineering, construction and consulting firm that provides finance, community development opportunities, site selection and a specialized New Markets Tax Credit incentives group, announced that American SpiralWeld Pipe Company is breaking ground on a 140-acre site in Paris, Texas for the Company's new advanced manufacturing facility.

Responsive Surface Technology, LLC Receives Follow-On Funding Through Invest Atlanta Programs

Responsive Surface Technology, an Atlanta-based Smart Bed and sleep technology innovator, today announced the closing of $3.2 million of additional funding. The funding comes from two Invest Atlanta-affiliated programs, the Atlanta Advantage Loan Fund and New Markets Tax Credit financing. The capital will not only enable ReST to expand its marketing and research efforts, but also help it open its first company-owned store in West Midtown.

TD Community Development Company Supports Company Committed to Environmentally Friendly Expansion

TD Community Development Corporation, a subsidiary of TD Bank, recently allocated $15 million in New Markets Tax Credits (NMTC) to assist Phoenix Packaging Operations, LLC, a minority-owned packaging company located in Dublin, Virginia.

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.”