The New Markets Tax Credit (NMTC) program is driving significant growth in underserved communities, fostering economic development and creating jobs where they are needed most. Central States Development Partners, Inc. (Central States) exemplifies the power of NMTC investments, demonstrating how strategic funding can transform industries and enrich local economies.

Central States allocated $10 million in NMTC funding to support a $34 million project for Orange EV, enabling the expansion of its 437,339-square-foot electric industrial vehicle manufacturing facility. This investment will allow Orange EV to increase production by 600%, manufacturing up to 1,800 terminal trucks annually. The project positions Kansas City, Kansas as a hub for electric manufacturing, aligning with developments such as Panasonic’s new battery production facility. It is also expected to be a catalyst for growth in the sector, creating substantial job opportunities, particularly for low-income individuals.

Project Overview:

• Total Project Cost: $34,000,000
• Total Federal NMTC Allocation: $34,000,000
• Central States NMTC Allocation: $10,000,000
• Distress criteria:
  • Census Tract: 20209043905
  • Poverty Rate: 47.70%
  • Median Family Income: 35.57%
• Co-CDE’s: Central States Development Partners, Inc., CBKC CDC, Wells Fargo CDE (Renaissance)
• Investor: Wells Fargo

Community and Workforce Impact:

The project goes beyond expanding production; it is creating 275 new jobs in a highly distressed, low-income area where the poverty rate is 47.70% and the median family income is 35.57%. The NMTC investment aligns with Kansas City’s Comprehensive Economic Development Strategy Plan, which aims to develop a skilled workforce through local training programs, enhancing opportunities for local students and diversifying the city’s industry sectors.

Job Creation and Workforce Development:

• 233 new jobs created and 143 existing jobs retained
• Average wage: $42.08/hr
• 100 construction jobs created, with an average wage of $30.69/hr

Accessible and Quality Jobs:

• Permanent accessible jobs: 211 (56%)
• Construction accessible jobs: 100 (100%)
• Quality jobs: Permanent: 376 (100%); Construction: 100 (100%)

Investment in Workforce:

Orange EV is committed to providing extensive employee benefits and career advancement opportunities, including:

• Medical, dental, vision, short-term disability, life insurance, and a 401(k) savings plan.
• Internal training programs such as 3×3 training, forklift training, and vehicle service technician training.

Educational Partnerships:

In addition, Orange EV is partnering with Kansas City Kansas Community College and the University of Kansas to offer training and employment opportunities for local students, ensuring long-term benefits for the community.

The Power of Market Tax Credits:

The New Markets Tax Credit (NMTC) program plays a critical role in revitalizing economically distressed areas by driving investments that fuel industry growth and create quality jobs. Orange EV is a clear example of how NMTC investments can transform both industries and communities. The expansion of Orange EV not only boosts production and positions Kansas City as a leader in electric manufacturing, but also generates vital job opportunities for low-income residents and enhances workforce development through targeted training programs.

The NMTC program is essential for bridging the gap between private investments and the needs of underserved communities, fostering sustainable economic growth. Through strategic partnerships and thoughtful investments, projects like this demonstrate the far-reaching impact of NMTC funding—stimulating local economies, creating jobs, and paving the way for a more inclusive and resilient future.

For more information, visit: https://www.economicgrowthcorporation.com/central-states-development-partners-inc.html.

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