New Markets Tax Credits
The NMTC Program attracts private capital into low-income communities by permitting investors to receive a tax credit against their federal income tax in exchange for making equity investments in specialized financial intermediaries called Community Development Entities (CDEs). The credit totals 39 percent of the original investment amount and is claimed over a period of seven years. The CDEs use investment proceeds to make loans into businesses in distressed areas, particularly those with high unemployment, high poverty rates, and low median incomes for residents. Loans made through the program finance a wide range of businesses including manufacturing, food, retail, housing, health, technology, energy, education, and childcare. Communities benefit from the jobs associated with these investments, as well as greater access to community facilities and commercial goods and services.
As a CDE, Cinnaire has enjoyed strong success in the program, having been awarded $239 million in such funds since it first applied in 2010. Cinnaire has a multi-state service area that includes eight states: Michigan, Illinois, Indiana, Wisconsin, Delaware, New Jersey, Pennsylvania and Maryland. Our decades of investment in low-income communities throughout our service area makes us acutely aware of the continued challenges faced in these communities, particularly for residents at the bottom of the economic ladder. We focus on projects that will have transformative impacts for communities and individuals. For our severely distressed communities, we select projects that spark growth and a renewed sense of community identity. For our most vulnerable low-income residents, we invest in projects that provide critical services such as health care and child care, and provide resources and training to establish a pathway toward a more stable future.