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. According to the New Markets Tax Credits Coalition, these investments have been critical in rural communities. In fact, 11% of rural NMTC projects are healthcare facilities.
NMTC projects in rural communities have increased healthcare access by financing 107 rural healthcare facilities, totaling nearly $800 million in project costs. This is part of increased efforts to invest in rural communities with New Markets Tax Credits. “The 2006 provision started a trend toward more investment in rural communities, which has become incredibly important as private investment in rural communities has become scarce and access investment in non-metro counties has picked up in recent years, hitting 27.3 percent in 2014,” says Bob Rapoza, spokesperson for NMTC Coalition. “Further, the NMTC has generated a total of $11.6 billion in project costs in low-income, rural communities through its innovative and flexible public-private investment model.”
Nearly 750,000 South Carolinians live in rural communities, according to the USDA Economic Research Service, with an estimated 87 Rural Health Clinics currently serving the state. For many of our neighbors, the amount of travel required, particularly to access specialists, presents a barrier to receiving the healthcare they need. New Markets Tax Credits can be a helpful tool in financing community facilities like hospitals and clinics in rural South Carolina.
As part of our technical assistance programming, South Carolina Community Loan Fund offers NMTC workshops throughout the state. Learn more about our technical assistance programs here. You can also learn more about our community facilities lending program here.