NMTC Permanence

New Markets Tax Credits in the News

March 13, 2023

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

Permanent NMTC legislation

Recent Senate legislation, sponsored by Senator Ben Cardin and Senator Steve Daines, proposes a permanent New Markets Tax Credits Program, in which NMTC investments would be subject to inflation adjustments and exemptions from the alternative minimum tax (AMT). The AMT sets limits on benefits that taxpayers with high economic income could receive. The inflation adjustment proposed by this legislation is applied to allocation rounds following 2023, and the AMT exemption applies to qualified equity investments following December 31, 2022. To read the proposed legislation, access the document here. To learn more about NMTC legislation and regulations, the Novogradac 2023 Spring New Markets Tax Credit Conference focuses on these issues and provides up to date information about trends and opportunities to connect with other professionals involved in NMTCs. To learn more about and register for this event (June 8-9, 2023 in Washington D.C.), click here.  

Projects

Globe Metallurgical, Inc. 

Globe Metallurgical, Inc (GMI) recently received $13.5 million in New Markets Tax Credits (NMTC) from UB Community Development, LLC (UBCD). This allocation allows GMI to acquire new and update existing equipment and will allow the company to refurbish two silicon furnaces and update foundations, material handling equipment, on-site power facilities, and rail access. Additionally, the new development will create 100 FTE jobs through its collaboration with the Alabama Workforce Training Center and add 130,000 square feet of real estate. To learn more about GMI, visit its website here.  To learn more about UBCD’s work in Alabama, click here.  

Child Crisis Arizona

The Phoenix Community Development and Investment Corporation (PCDIC) recently allocated $15 million in NMTC to Child Crisis Arizona. Child Crisis Arizona is a nonprofit in Mesa, AZ that works to prevent childhood abuse through offering services such as emergency shelters, foster care, adoption, education, and parental support. This allocation reimburses the expansion of Child Crisis Arizona across 2.4 acres of land and allows the organization to construct a new Center for Child & Family Wellness, which will be net zero in its operations and will allow over 2,000 more people to be served each year. To learn more about Child Crisis Arizona, visit its website here.  

Oasis Free Clinics

Oasis Free Clinics recently received $60,000 New Markets Tax Credits dollars from CEI Capital Management LLC (CCML). This donation was made as part of CCML’s larger NMTC investments. Oasis Free Clinics is a clinic that provides medical and dental care to uninsured adults. Oasis caught CCML’s attention through its work serving uninsured adults at or below 200% of the Federal Poverty Line as well as low-income insured adults. According to the Oasis Free Clinics Executive Director Anita Ruff, the $60,000 will help the organization “purchase necessary medical and dental supplies, provide staff with training, and assure that [they] are providing culturally and linguistically appropriate care.” To learn more about Oasis Free Clinics, visit its website here.  

Dallas Development Fund

In December 2022, the Dallas Development Fund (DDF) received $55 million in New Markets Tax Credit to allocate toward low-income and underserved areas. DDF has a substantial background in NMTC allocations, receiving them in 2009, 2012, 2024, 2017, and now 2022. Through its long lasting focus on South Dallas, DDF has been able to fund projects centering on job-creation and social services. Using its most recent allocation, DDF plans to continue focusing on funding projects of affordable housing, education, healthcare, and childcare. According to City Manager T.C. Broadnax, DDF is “the only municipal CDE in Texas to receive its own NMTC allocation, ever.” To learn more about DDF, click here.  

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.

LifeCity, L3C