Diode Dynamics
New Markets Tax Credits in the News
May 4, 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
Manatt, Phelps & Phillips, LLP announced on April 21 that Sameer V. Patel has joined the company in Chicago. Manatt is known for its integrated professional services, and the addition of Patel, who has extensive experience in federal and state NMTC, allows the company to expand the breadth of its services as well as invest in low and moderate income communities. To learn more about Manatt’s services, visit www.manatt.com. To learn more about Sameer V. Patel, visit his profile here.
Projects
Diode Dynamics recently announced that it will utilize $4 million in NMTC for an expansion of its operations. Diode Dynamics is an automotive lighting manufacturer and retailer. This expansion, taking place in St. Charles, Missouri, is funded by Heartland Regional Investment Fund, L.L.C. (HRIF) and will provide flexible working capital and expand its workforce from 87 staff members to 150. Additionally, the expansion will allow Diode Dynamics to invest into Research and Development to improve production of its lighting products. HRIF is a CDE that invests primarily in St. Louis County, the City of St. Charles, and several cities in Illinois. To learn more about HRIF, visit their website here. To learn more about Diode Dynamics’s upcoming expansion, please visit their website for updates.
On April 18, the Woonsocket Heritage Canal District Commission (WHCD) revealed tax incentive programs to attract investors to Woonsocket, RI. The group selected the Blackstone River and Main Street as areas to focus on for investment. In addition to constructing a canal within Blackstone River, the WHCD hopes to increase tourism through the use of stackable tax credits. The WHCD plans to incorporate NMTCs, which provide up to 39 percent in tax breaks in hospitality, an area that the WHCD plans to heavily focus on. To learn more about the developer in Woonsocket, visit the Committee information website here.
The Everglade Foundation has recently received a $50,000 investment from Northern Trust. Northern Trust investments in a wide variety of businesses in Florida, their total investment portfolio totaling $541 million. This portfolio includes a $3.2 million equity investment in NMTC for Miami Lighthouse for the Blind. This investment was to fund an addition to the Miami facility in hopes to increase programs for people who are blind or visually impaired. To learn more about Northern Trust, visit their website here, and to learn more about Miami Lighthouse for the Blind, visit https://miamilighthouse.org/.
Shasta Community Health Center plans to expand into a larger building in the City of Redding in California. The existing buildings will take 4 to 6 weeks to demolish and the new building’s construction will take 14 months to complete. The health center’s main focus will be pediatric and maternity services, and the offered care will include various specialists to assist with high-risk pregnancies, breastfeeding, and mental health support; however, Shasta Community Health Center will not provide delivery services for babies. The total cost of the facility is estimated at $19 million, and Shasta Community Health Center plans to utilize federal NMTC to help mitigate costs. With NMTC investment, the health center will boost economic growth and help create jobs at the center. To learn more about the project and the services offered at the health center, please visit the Shasta Community Health Center website here.
Using $7M in NMTCs, Tiger Fiber, Inc. plans to expand its Sauget, IL facility to create 90 full-time living wage jobs, 90 indirect jobs, and to meet increasing demand with additional equipment. Tiger Fiber, Inc is an industrial help fiber processor that hopes to create a sustainable agricultural system. The company’s goal is to “assist in the reintroduction of hemp to American farmers, manufacturers, and stakeholders at every level of the industrial supply chain,” resulting in increased financial stability. This investment is funded by U.S. Bancorp Community Development Corporation (USBCDE) and the Heartland Regional Investment Fund, LLC.
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.