TRF Receives $42 Million NMTC Allocation
The Reinvestment Fund is pleased to announce a 2011 New Markets Tax Credit allocation of $42 million from the U.S. Department of the Treasury’s CDFI Fund. TRF is one of 70 organizations nationwide that received $3.6 billion in allocations in this most recent round. They were selected from a pool of 314 applicants that requested over $26.7 billion.
“We are pleased to see so many of our friends and peers on the allocation list,” said Don Hinkle-Brown, TRF President and CEO. “TRF will use these new credits to draw investors to communities, schools and food stores that traditional lenders overlook.”
TRF’s award marks its fifth NMTC allocation to date. In each instance, TRF has moved quickly to deliver capital to eligible projects. As with its past awards, TRF plans to use its NMTC allocation to finance charter schools, healthy food access and commercial real estate in low-income communities. By financing these project types, TRF will: 1) increase access to high quality educational options; 2) increase access to healthy food options; 3) improve workforce readiness of high school graduates; 4) increase quality job opportunities; and 5) revitalize distressed areas. Learn more about TRF’s NMTC program.
The NMTC, established by Congress in December 2000, permits individual and corporate taxpayers to receive a credit against federal income taxes for making equity investments in investment vehicles known as Community Development Entities. The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. Community Development Entities must apply to the CDFI Fund to compete for this allocation authority.