Earlier today, the U.S Treasury’s Community Development Financial Institutions Fund has announced that it has awarded $3.5 billion in New Market tax credits in an attempt to stimulate national economy.
In the official announcement, the treasury revealed that the tax credit allocation award will help economic growth in low-income urban neighborhoods and rural communities across the United States. Secretary Steven Mnuchin said, “Today’s awards will finance projects ranging from manufacturing plants that create jobs to critically needed infrastructure.”
The Congress established the New Markets Program back in 2000 in an attempt to encourage equity investments across urban and rural communities. Since then, the NMTC program has awarded a total of $54 billion.
Officials have revealed that all 73 entities which were awarded this year have committed to providing at least 75 percent of their investments in high unemployment areas. Some of the major recipients this year include the Citibank NMTC Corporation in New York, AltCap in Kansas City, Florida Community Loan Fund in Orlando and the Guam Community Development Enterprise in Tamuning.