New Markets Tax Credits
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 an incentive for taxpayers to invest in 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's NMTC Projects Making a Difference
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.
Ivy Tech Automotive Technology Center
In a city with an 11.7% unemployment rate, Ivy Tech Community College was looking to erect a state-of-the-art automotive training center in Indianapolis. This new vocational training center will ultimately provide 600 graduates a year the skills to succeed in high-demand, high-wage jobs in the auto industry while boosting the regional economy.
This was made possible through a NMTC investment totaling $15.5 million from Cinnaire and PNC Community Partners Inc. and $5 million from Indianapolis Redevelopment CDE. The Automotive Center was awarded the 2022 Novogradac Journal of Tax Credits Real Estate QLICI of the Year Award.
Salvation Army Freedom Center
The Freedom Center in Chicago is home to the Harbor Light Center, one of the Salvation Army’s largest substance abuse recovery programs in the United States. For over 70 years, they have provided comprehensive, specialized services to persons seeking to overcome the disease of substance and alcohol abuse. Pathway Forward, the Freedom Center’s residential work-release program helps men and women who have been imprisoned successfully re-enter society. And it houses Salvation Army's outreach ministry, providing food and shelter for those in need.
Cinnaire invested $9M in NMTC to help finance the new, 188,000 square foot facility.
Mott Culinary Arts Institute
The Mott Culinary Arts Institute in Flint, Michigan, provides students with the opportunity to complete an associate degree in Culinary Arts, Baking and Pastry Arts, Food Service Management. The state-of-the-art facility, located in a renovated 100-year-old Woolworth's building, boasts multiple laboratories, and courses are taught by award-winning, certified executive chefs, and food service professionals.
The Charles Stewart Mott Foundation donated the iconic Woolworth Building to house the new facility and Cinnaire, in partnership with Chase, provided a $9 million NMTC allocation.
Our Locations
Lansing
1118 South Washington
Lansing MI, 48910
Indianapolis
201 North Illinois Street
Suite 1530
Indianapolis IN, 46204
Wilmington
100 W. 10th Street, Suite 502
Wilmington, DE 19801
Chicago
225 West Washington
Suite 1350
Chicago, IL 60606
Madison
10 E. Doty Street, Suite 617
Madison, WI 53703
Grand Rapids
100 Cesar E. Chavez Ave.
Suite 202
Grand Rapids, MI 49503
Detroit
2111 Woodward Avenue, Suite 600
Detroit, MI 48201