Indigo Block
New Markets Tax Credits in the News
October 20, 2021
The New Markets Tax Credit (NMTC) Program is a federal financial program developed by the United States Department of the Treasury to incentivize community development using federal tax credits allocated by private investors in disadvantaged and distressed communities. In this biweekly blog, LifeCity will discuss key developments related to the NMTC Program.
In the past few weeks since the New Market Tax Credit award allocations, several exciting developments in the field have been announced. This biweekly blog post will discuss a new Buc-ee’s being opened in Alabama, the recently passed Revitalising Downtowns Act, and the grand opening of a new affordable housing location in Boston.
News
The Revitalising Downtowns Act aims to bring downtown areas and commerce back to life by creating a new federal tax credit that specifically incentivizes the conversion of unused office buildings into residential or commercial buildings. This program is separate from New Market Tax Credits, but can be used in conjunction with NMTCs, making it potentially more attractive to CDEs looking to invest in distressed areas.
Projects
UB Community Development announced that they are investing $7 million via New Market Tax Credits to open a new Buc-ee’s location in Auburn, Alabama. Buc-ee’s is a Texas-based chain of convenience stores with a loyal customer base that loves its specialty products, branded gear, and clean bathrooms. In recent years, the company has expanded into Georgia, Florida, and Alabama. This new large store will draw many customers and has capacity for 437 parking spots. This investment will also create 175 quality jobs to help run the store.
A new NMTC-funded building development called Indigo Block had its grand opening in Boston. Indigo Block has 89 units, which can be used for mixed-use residential and commercial tenants. The affordable housing units created will allow economically diverse people to live in the neighborhood, and the commercial spaces will create new jobs. The development was created with the environment in mind and is LEED certified. The New Market Tax Credits that were used to invest in Indigo Block came from Massachusetts Housing Investment Corporation.
These inspiring projects and more are underway across the US. LifeCity specializes in impact assessments and third-party validation services for CDEs engaged in NMTC-financed projects. As a third-party, we help CDEs and other companies measure, manage, track, and report their impact to ensure a credible and transparent message. Our services are available across all stages of the NMTC allocation process and provide personalized impact reports and videos that support clients, projects, and communities.