LG Energy Solution
New Markets Tax Credits in the News
April 6, 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 ULI/REAP Virtual Academy is an online and in-person educational service dedicated to advancing diversity and inclusion in the real estate industry. Later this spring, REAP is releasing a new curriculum that includes topics such as financing and impact investing and important tools for green building development, led by Duval & Stachenfeld law firm. These new modules will also focus on real estate development in Black, Latinx, and other minority communities. Additionally, the curriculum will include a section dedicated to introducing the New Markets Tax Credit program as an opportunity for professionals of color and other REAP students. Classes begin on April, 25, 2022. Visit here to learn more about the program.
Projects
The Martin Luther King Jr. Community Hospital in Los Angeles has recently acquired a $22.5 million investment to expand its facility. This project is made possible by several investors, including Stonehenge Capital, TELACU, Chase, and City First Bank, and is also funded by New Markets Tax Credits. With this funding, the hospital plans to focus on its behavioral health team and other programs to provide aid to minority communities affected by COVID-19 caused chronic illness.
LG Energy Solution is building a battery production facility in Holland, Michigan. This facility, which will cost $1.7 billion, is expected to create 1,200 jobs. LG is a lithium-ion battery manufacturer dedicated to “green business, promoting sustainability, electricity, and innovation,” and the company hopes to boost Michigan’s economy through the construction and operation of its facility. The facility will be funded in part by Michigan Community Capital, who is providing a $1.7 million investment in new market tax credit. Other investors include West Michigan Works!, Grand Rapids Community College and the Michigan Strategic Fund.
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.