IntegriCo Composites

New Markets Tax Credits In the News

December 19, 2023

The United States Department of the Treasury’s CDFI Fund  approved $5 billion in New Market Tax Credit allocation for the 2023 round. This allocation was spread across the country to 102 organizations. The NMTC has continued to be one of the most supported government programs by both local and state officials. Each year, the positive impact that the NMTC program has on low-income communities continues the push to make the 23-year-old program permanent in the United States.

With continued support from governments and companies alike, the push to make the NMTC a permanent program grows each year. In April of this year, the New Market Tax Credit Extension Act of 2023 was introduced to ensure that the program, which expires in 2025, will continue to support underserved communities each year. The extension was introduced this year by congress members Terri Sewell, Claudia Tenney, Danny Davis, and Mike Kelly. These four members of congress represent both parties and states from various regions across the country, proving the widespread support that a permanent NMTC program would receive in Congress.

The extension act should continue to see support from both parties, as more co-sponsors from the Senate and the House add up. The program has received more widespread support than any other of its kind. If it becomes a permanent program in the United States, it is likely that there will be even more trust and focus on the program, which would lead to even more support for low-income communities.

Project Highlight: Integrico Composites of Louisiana

The positive impact that the NMTC program has brought to various communities across the United States can be highlighted by an expansion at IntegriCo Composites, a recent NMTC transaction involving AMCREF Community Capital. The project is headquartered in Sarepta, Louisiana and uses recycled plastic to build railroad crossties and other industrial materials. IntegriCo plans to divert 6.6 million pounds of plastic from landfills each year going forward. Since 2009, IntegriCo has diverted and reused 80 million pounds of landfill plastics, all while providing jobs in low-income communities in Louisiana. The company has goals of expanding its industrial products, all while maintaining its commitment to the environment and to its community. 

IntegriCo’s goals extend beyond industrial innovation. The company is also focused on providing support to the low-income community of Webster Parish, Louisiana. Through working with community officials in the parish, IntegriCo is working on providing more hours, jobs, and opportunities to the workers it employs. Ultimately, as the company grows, it will be able to provide more support  to the community through employment and partnerships.

IntegriCo is the ideal project for NMTC allocation. With its commitment to both the environment and the community, IntegriCo has created a sustainable process that will create a positive impact. If the NMTC becomes a permanent program in the future,then there will be space for more projects like Integrico to succeed in the United States.