on the Obama Administration’s commitment to increase economic opportunity in
distressed areas of the United States, the U.S. Department of the Treasury’s
Community Development Financial Institutions Fund (CDFI Fund) today announced $3.5
billion in New Markets Tax Credit (NMTC) awards nationwide. Treasury will
provide 85 organizations with tax credit allocation authority under the tenth
award round of the NMTC Program.
“The New Markets Tax Credit
addresses one of the most significant obstacles to economic development that
low-income communities face: a lack of access to patient, private investment
capital,” said Treasury Assistant Secretary for Financial Institutions Cyrus
Amir-Mokri. “The $31 billion worth of tax credits awarded in past years have
gone toward preserving jobs and bringing community
facilities and new businesses into neighborhoods that desperately needed them.
I expect today’s awardees will continue that trend.”
“In fact, over 70 percent of New
Markets Tax Credit investments have been made in communities that meet the
highest distress criteria, above even the program’s requirements, CDFI Fund
Director Donna J. Gambrell. “That result effectively demonstrates how essential
the New Markets Tax Credit Program is to spurring economic development in
The NMTC, established by Congress
in December 2000, permits individual and corporate taxpayers to receive a
credit against federal income taxes for making equity investments in vehicles
known as Community Development Entities. The credit provided to the investor
totals 39 percent of the cost of the investment and is claimed over a
seven-year period. For every dollar invested by the Federal government, the
NMTC Program generates over eight dollars in private investment. This strong
record of spurring economic growth is one of the reasons why President Obama’s
FY14 budget included an expansion and permanent extension of the New Markets
The 85 organizations receiving awards
under the 2012 round were selected from a pool of 282 applicants that requested
approximately $21.9 billion. They are headquartered in 28 states and the
District of Columbia, but will be providing services in a wide range of local
and state areas as well as on the national level. For more detailed information
about the states where awardees anticipate investing their allocations, please
see the CDFI Fund’s website at www.cdfifund.gov/statesserved.
To Learn More
The complete award list and other
highlights of the 2012 NMTC Program Awards can be found on the CDFI Fund’s
website at www.cdfifund.gov/2012nmtc.
About The CDFI Fund
Since its creation in 1994, the
CDFI Fund has awarded over $1.7 billion to CDFIs, community development
organizations, and financial institutions through the CDFI Program, the Bank
Enterprise Awards Program, the Capital Magnet Fund, the Financial Education and
Counseling Pilot Program, and the Native American CDFI Assistance Program. In
addition, the CDFI Fund has allocated $36.5 billion in tax credit authority to
Community Development Entities through the New Markets Tax Credit Program.
Learn more at www.cdfifund.gov.