Award Will Support Economic Development in Midwest & Mid-Atlantic Region
Cinnaire announced today that the organization has received a $55 million New Markets Tax Credit (NMTC) award from the U.S. Department of Treasury’s CDFI Fund. Cinnaire was one of 73 organizations selected from a pool of 214 applicants nationally. In total, the CDFI Fund announced $3.5 billion in NMTC allocations that will stimulate growth in low-income urban and rural communities and increase economic opportunity nationwide. Cinnaire received one of the largest regional awards from this year’s allocations.
“The New Markets Tax Credit has proven to be a critical financing tool that creates jobs, revitalizes communities and spurs economic development,” said Mark McDaniel, Cinnaire president & CEO. “Since 2009, Cinnaire has received a total seven allocations for a total of $359 million in New Markets Tax Credit awards and we have seen first hand the transformational impact this funding creates for communities in need. We look forward to working with the CDFI Fund, our congressional leaders and our development partners to use this award to positively impact neighborhoods throughout our footprint.”
The NMTC helps economically distressed communities attract private investment capital. The CDFI Fund allocates the tax credit to Certified Development Entities (CDEs) through a competitive application process. Since 2009, Cinnaire has a received a total of $359 million in seven federal NMTC awards. To date, Cinnaire has invested the allocations in 32 community revitalizing projects leveraging more than $1.2 billion in total development costs. These projects have created or retained more then 5,800 construction or permanent jobs, primarily for low-income individuals. These past awards have benefited projects in multiple states including the Salvation Army Freedom Center in Chicago, New Markets West in Philadelphia, and the Intersection Connection YMCA in Lafayette, Indiana.
The NMTC program was established by Congress in 2000. For every $1 invested by the federal government, the NMTC program generates over $8 of private investment. Since its inception, the NMTC program has supported the construction of 51 million square feet of manufacturing space, 89 million square feet of office space, and 65 million square feet of retail space. To view the NMTC FY 2018 award book, please click here. The New Markets Tax Credit program is slated to expire at the end of 2019, after one final round of allocations. Bipartisan legislation, which Cinnaire supports, has been introduced to permanently continue the program.
To learn more about the CDFI Fund, please click here.