The New Markets Tax Credit Program (NMTC) was established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities.
The NMTC Program attracts investment capital to low-income communities by offering individual and corporate investors tax credits against their federal income tax return in exchange for making equity investments in specialized financial institutions. Over the past 14 years, the U.S. Treasury’s CDFI Fund, the overseer of the program, has made 836 awards, allocating a total of $40 billion in tax credit authority.
Earlier this month, as part of the 2013/2014 allocations, the U.S. Treasury awarded a $43 million allocation to SunTrust Banks, Inc. The company’s subsidiary, SunTrust Community Development Enterprises, was one of 87 recipients receiving awards totaling $3.5 billion. The award will allow SunTrust to continue to make loans and investments for community development projects that stimulate economic growth and create jobs in low-income areas across the Southeast, including South Carolina.
With the 2013/2014 allocations just announced, organizations will now turn their attention to the 2015 award cycle. While there is a lot of buzz within the community economic development field around NMTC, there exists a level of misunderstanding on the requirements and specifics of the program.
To help increase understanding, CLF is partnering with the SC Association of Community Development Corporations and SunTrust Community Capital to cohost the New Market Tax Credit Workshop on June 27, 2014 in Charleston, SC.
The workshop will show how the program can be a helpful tool in the financing of mixed-use projects, charter schools, grocery stores, and commercial redevelopment in low-income communities throughout South Carolina. Speakers will share a general overview of the NMTC program, examples of NMTC financed projects in South Carolina, and a high level discussion of the legal requirements for NMTCs.
The workshop is free, but registration is required. For further information and to register, please click here.