New Markets Tax Credit
Housing is one major ingredient for creating healthy communities, but by itself, the impact of housing can be limited. Vibrant commercial enterprises are also critical for providing employment and giving residents access to needed goods and services.
New Markets Tax Credit
Cinnaire leverages the federal New Markets Tax Credit (NMTC) program to focus investment in transformative projects in the most distressed communities in which we work. We look for opportunities to stimulate communities economically and provide the most vulnerable residents with critical services such as vocational training and child care.
The New Markets Tax Credit (NMTC) Program promotes economic advancement in distressed communities by encouraging private investment in community development projects. Rather than providing a direct federal grant to projects, the program marshals the private sector resources by providing a incentive for taxpayers to invest a community development organizations with a proven track record of impact in low income communities. These organizations put that capital to work, financing everything from manufacturing expansions to health clinics and daycare centers. Since 2000, the program has delivered $110 billion to more than 6,500 projects, creating over 1,000,000 jobs.
Since beginning our involvement with the program in 2009, Cinnaire has invested well over a quarter billion dollars in NMTC projects. We use each allocation of NTMCs to support large-scale financing for a range of community facilities that support our belief that all people deserve the opportunities provided by living in healthy communities.
Advocating for Permanent Funding of the NMTC
Federal funding for the NMTC must be renewed every few years. This creates unnecessary uncertainty for developers and investors looking to invest in underserved communities. In 2021, a bipartisan group in the Senate and House introduced bills to make funding for the NMTC program permanent. Our industry is encouraging Congress to prioritize this proven tax incentive for bringing investment to communities that need it most.
Cinnaire has received 7 NMTC Awards,
totaling $359 Million
We have closed 28 NMTC Projects, creating $1 Billion in total development costs
As a regional CDE, our service area covers 8 States in the Midwest and Mid-Atlantic
We manage over $250 Million of NMTC allocation on behalf of third-party CDE’s
Marygrove Childhood Education Center
The Marygrove Early Childhood Education Center was the first New Markets Tax Credit project in Detroit to focus on early childhood development and education. Located at the Marygrove Conservancy Campus–formerly a woman’s college–the Marygrove Early Education Center is a key element to the cradle-to-career P-20 project. The revitalized campus is an anchor for the redevelopment of the surrounding Livernois-McNichols neighborhood, ensuring residents have access to high-quality education and holistic support services for children ages birth to 5 years and their families.
Marygrove Early Childhood Education Center
Ivy Tech Automotive Technology Center
Ivy Tech Community College was looking to erect a state-of-the-art automotive training center in Indianapolis, hoping to double the number of graduates each year. In a city with an 11.7% unemployment rate and a 37% poverty rate, this vocational training center provides 600 graduates a year the skills to succeed in high-demand, high-wage jobs while supporting the revitalization efforts in the Lafayette Square area, attracting employers and new businesses and boosting the regional economy.
This was made possible through a NMTC investment totaling $15,500,000, stemming from a $9 million investment from Cinnaire, $1.5 million from PNC Community Partners Inc. and $5 million from Indianapolis Redevelopment CDE.
Peter Giles
Senior Vice President, Public Funding
(517) 364-8944