Local leaders, businesses, nonprofits, and community development organizations sound-off on the New Markets Tax Credit

In November of 2019, nearly 1,000 organizations signed a letter asking Congress to extend the New Markets Tax Credit.

We asked organizations signing the letter to tell us why the NMTC is important to their organization or community. Below is a sampling.

Why is the New Markets Tax Credit Important to Your Community?

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.

Kathy Bray, President & CEO, Volunteers of America, Utah, Salt Lake City, UT

NMTCs made it possible to construct a resource center for homeless youth by bringing $1M in equity to the project

Richard Brannan, Chief Executive Office, Wind River Family & Community Health Care, Riverton, WY

The NMTC means access to investment capital that is needed to develop financially viable projects in poor communities and helps to stimulate local economies.

David Mark, CEO, Bighorn Valley Health Center, Inc., Hardin, MT

The NMTC provides hope to rural communities in Montana that we can build the infrastructure to provide care of the highest quality to parts of the country that too often are forgotten in the halls of Congress. We’re deeply grateful for the program, and hope that you see the value it provides across rural America!

Michael Ross, Investment Director, The Business Valued Advisor Fund, Austin, TX

NMTCS provide opportunities to fund both small business transactions enabling direct debt support for companies with higher risk profiles that according the Federal Reserve’s 2018 Study do not attract or receive the credit required to grow, yet form the base for 2/3rds of the nation’s job growth and funding of larger leveraged transactions that support manufacturers, healthcare and education, all improving the access to necessities for our disadvantaged communities to form long-term platforms for sustainable growth. Without this flexible resource the capital needs required by these divergent yet necessary components of community stability and growth could not be efficiently and effectively served.

Martin Howe, President, MVB Bank Community Development Corporation, Clarksburg, WV

The NMTC is a pivotal tool that seriously assists in economic development. From a creditors standpoint it reduces the risk in the investment of financing the project. From a developers standpoint the NMTC can be the triggering factor to make the overall a project move forward. The NMTC projects create growth in the economy, especially in distressed and underserved markets that are in dire need to investments. This types of economic development tools are critical to allow for future growth. MVB Community Development Corporation is fully supportive of the NMTC and has seen firsthand of how these types of credits can and will continue to foster growth.

Eddie Lefeaux, CEO-Owner, Westport Linen Services, LLC., Baton Rouge, LA

The NMTC program allows us to reinvest our capital dollars in our company therefore creating more jobs as we grow.

Joni Robertson, CAO, Golden Valley Natural, Shelley, Shelley, ID

The NMTC program has provided jobs and benefits to our community. It has been a huge benefit and has benefited many families. It has provided jobs and given employees an opportunity to learn new skills and have opportunities for job advancement within our organization. It has also allowed these employees to become more marketable and gives them future opportunities they would not have had. It has been a great benefit to our company and our community.

Emilee Powell, Manager of Impact Measurement and Financial Stability, Homewise, Santa Fe, NM

We use NMTC to create opportunities for affordable homeownership. Our homeowners help reinvigorate the distressed neighborhoods

Jeff Arnold, Leverage Law Group, LLC (Leawood), Leawood, KS

The NMTC provides flexible, targeted assistance to the country’s neediest communities, helping improve and revitalize these communities through private capital markets.

Martha Halnon, CEO, Five-Town Health Alliance, Inc, Bristol, VT

While our organization (FQHC) has not yet used this, the NMTC is a very important program that allows for tax credits to many organizations. They are an amazing resource if you are contemplating a capital project from renovation to a new build.

Dirk Meminger, Board Member, Bridge Investments, Rock Island, IL

NMTC’s provide capital to assist in funding the development and expansion of businesses that then expand employment and the financial well being of communities.

Dawn Stanhope, President & CEO, Boys & Girls Clubs of Manatee County, Bradenton, FL

Our community has received tremendous investment for our youth through the NMTC program. Without it, we would not have been able to build and expand our facilities to serve nearly triple the amount of youth in our county – from 200 kids per day up to 550! These programs offer parents peace of mind that their kids will be in a safe, supportive environment every day after school and full days in the summer so our youth can reach their full potential as productive, caring, responsible citizens. The funding received from this program made all of the difference and leveraged private investment from philanthropy to an area of high need and little resources to meet that need. A win for all involved, including our very own Congressman’s support, Vern Buchanan.

Ginger Young, CEO, The Childhood League Center, Columbus, OH

But for the NMTC’s, we would have not been able to build a larger facility to serve MORE very young children with developmental delays in our community

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.

Mike Magette, Controller, The Terteling Company, Inc., Boise, ID

The Company was able to build a new Caterpillar location in Pocatello, Idaho with the New Markets Tax Credit. First, this location employs 120 full time equivalents in a state of the art location. Second, this location enhances the Company’s Mining business which allows additional sales and job growth and opportunities. Third, the community has been enhanced with additional businesses (supplementary) that have built and supported this location. We partner and have built close relationships with Century High School and Idaho State University with recruiting events and supporting the schools to enhance the partnership. Additionally, the facility will provide a “safe haven” for the 1,300 students and facility in case of an emergency. It shows the Company’s commitment to the community.

Jennifer Bransfield, COO and General Counsel, Chicago Neighborhood Initiatives, Chicago, IL

CNI serves neighborhoods on Chicago’s South Side. We have leveraged over $350 million in new industrial, retail, and recreational development in a single census tract in Pullman through the New Markets Tax Credits program. Since the first NMTC investment in 2013, violent crime in the neighborhood has dropped 52% and jobs in the community have increased by 43%.

Lawrence McComie, Vice President, PIDC Community Capital, Philadelphia, PA

The NMTC is an important tool used to fight poverty and support disadvantaged businesses in highly distressed communities.

Laurel Robinson, President/CEO, Housing Center of the Palm Beaches, West Palm Beach, FL

An opportunity to bridge the funding gap that is universally present in projects that utilize some manner of public funding.

Madeleine Steczynski, Founder & Executive Director, Zumix, East Boston, MA

In 2009, we utilized New Market Tax Credits to purchase and renovate a long-abandoned city-owned fire station, transforming it into a state of the art creative youth development center. We employ over 50 artists, engineers and administrators, who serve close to 1,000 young people per year – dramatically improving their life trajectories. We are celebrating our 28th year, and with the support of the NMTC, own our building outright (with no debt). Hopefully this will provide the foundation for the next 28 years!