Federal Budget

New Markets Tax Credits in the News

April 10, 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

FY 2024 Budget Blueprint

Earlier in March 2023, President Biden released a fiscal year (FY) budget blueprint for 2024.  This $6.9 trillion proposal includes several benefits for communities, including a $28.3 billion expansion for Low-Income Housing Tax Credits (LIHTC), the creation of a neighborhood homes tax credit (NHTC), and a $1.1 billion increase in funding for Housing and Urban Development (HUD). It will also make the NMTC program permanent at $5 billion per year after 2026. To read this proposal, access it here.  

Projects

Food Bank of Central and Eastern North Carolina

Rural Development Partners recently provided $12.5 million in NMTC financing to the Wilmington Branch of the Central and Eastern North Carolina Food Bank (FoodBankCENC). This allocation will allow the organization to build an entirely new facility, expand job opportunities, and serve more community members. This new building will include space for significantly more dry food and coolers and freezers to more effectively provide healthy food options. With the addition of a teaching kitchen, the facility both educates on and provides various healthy and safe food options to tribal communities. To learn more about FoodBankCENC's new facility, watch this promotional video created to attract funding. To read about Rural Development Partners and its other investments, visit the website here.  

Crown Equipment

Rural Development Partners also provided $17.5 million in NMTC financing to Crown Equipment in North Carolina. This investment allows Crown Equipment to renovate a new facility nearby to their Kinston, NC facility and will bring 200 employment opportunities for the town and include environmentally sustainable renovations. The expansion of its facilities allows Crown to increase efficiency in manufacturing and improve the environmental impact of the equipment it produces and warehouse services it offers. To learn more about Crown Equipment’s offerings, visit the website here.  

CrescentCare

CrescentCare in New Orleans is partnering with Gulf Coast Housing Partnership to build a health clinic offering a wide range of services, such as sexual health, behavioral health, and primary care. This location in Mid City is funded through New Markets Tax Credits from Gulf Coast Housing Partnership, Capital One, and Hope Enterprise Corporation. To learn more about CrescentCare and services it offers, please visit www.crescentcare.org. To learn more about Gulf Coast Housing Partnership, click here.  

Lodge Cast Iron

JPMorgan Chase recently provided a $8 NMTC to Lodge Cast Iron to renovate existing facilities and create 100 new jobs. Lodge Cast Iron is located in South Pittsburg, Tennessee and is nicknamed “Skillet City'' due to the town’s large reliance on the company and the company’s dedication to its community. This investment will allow the company to continue prioritizing its employees and community members by increasing safety and efficiency in operations. To learn more about Lodge Cast Iron or shop their products, visit the company website here.  

CSKT Health Center

The Confederated Salish and Kootenai Tribes received NMTC investment to construct a health care clinic in Ronan, Montana, which will increase access for indigenous people who previously had to travel large distances for basic health care. The CSKT Ronan Health Clinic, in addition to offering medical services, also will include a physical therapy unit and fitness center. With estimates that 70% of its future patients live as low-income people, accessible and affordable healthcare is crucial for the people of Ronan, many of whom live on the Flathead Reservation or are members of the CSKT. The new 12,000 square foot facility replaces a temporary clinic that replaced the previously demolished healthcare center and only served tribal elders. Constructing a new facility allows all community members to access its many services, including primary care, urgent care, an infusion center, and room for infectious patients. The facility is expected to open in 2024. To learn more about CSKT Health Clinics, 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.