Smart City
New Markets Tax Credits in the News
March 23, 2022
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.
News
The Novogradac New Markets Tax Credit (NMTC) conference is scheduled to take place from June 9 to June 10, 2022. This conference is designed to explore recent NMTC legislation and news and provide insight on the program and its benefits. The event will take place both online and in person in Washington, D.C. The Novogradac conference will include current events, such as a new Connecticut bill that incentivises state NMTC for 39% of qualified equity investments. These investments will follow the federal NMTC schedule (5% for years 1-3, 6% for years 4-7) and will receive a statewide cap of $25 million.
Projects
A new “Smart City” was announced on March 10, 2022, set to be constructed in Tuskegee, Alabama. This investment is possible through the Joint Partnership between TPT Global Tech, Inc. and the City of Tuskegee and is financed through the combination of New Markets Tax Credits, municipal bonds, and other forms of financing. The Smart City project, which will contribute to housing, education opportunities, and leisure activities, is expected to be completed in three years, and will also increase job opportunities in the area. Additionally, the project will include Leadership in Energy and Environmental Design (LEED) certification and will also implement other sustainable measures, such as renewable energy generation, more efficient waste management strategies, and high-end technologies to attract global companies.
The Innovate Fund has recently invested in Container Technologies Industries using NMTCs to construct an industrial facility that specializes in the production of nuclear waste containers. This project is expected to create at least 20 new permanent jobs with benefits, such as training, bonuses, and promotions. The location of the project, Helenwood, TN, experiences a poverty rate of 35.9% and an unemployment rate of 16.8%, and the production of this plant will create job opportunities for these low-income community members.
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.