X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-The Treasury Department has dispersed another round of New Market Tax Credits, following its $1.5-billion allocation in May. Altogether, entities in several states will be receiving $5 billion in these credits. Established by Congress in December 2000, the NMTC program permits an individual or corporate taxpayer to receive a credit against federal income taxes for making equity investments in Community Development Entities (CDEs). The investor receives a credit totaling 39% of the cost of the investment. Like Low Income Housing Tax Credits, the demand for NMTC has not been as robust as in previous years given the economy; declining profits usually translate into a declining need to offset them with a credit.

However as the general economy moves hesitantly towards recovery, there is an expectation that more of these credits will be put into actual use. Locally, several organizations were awarded credits in this round, including CDF Development, for $50 million; Community Development Funding, $10 million; Harbor Bankshares Corp., $20 million–Harbor received $50 million in the last round; Mid-City Community CDE, $60 million; Urban Action Development Community, $15 million; and Urban Research Park CDE, $30 million.

Some of these firms will provide financing to projects; others will develop projects themselves, either locally or nationally. CDF Development, for example, provides loans and equity investments to increase the number of developments of large-scale retail and mixed-use projects in low-income communities. Community Development Funding invests in not-for-profit faith and community-based organizations seeking to establish new facilities nationwide. HBC, for its part, will use its NMTC allocation to develop or rehabilitate commercial real estate and workforce and affordable housing in Baltimore.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.