The New Markets Tax Credit (NMTC) Coalition is a national membership coalition that advocates on behalf of the NMTC program. The NMTC Coalition issued its 2021 New Markets Tax Credit Progress Report, which details the types of projects that NMTCs funded in 2020. Overall, NMTC financing helped fund 272 projects in 48 states, the District of Columbia, and Puerto Rico in 2020. In addition, NMTC allocation provided $2.9 billion in funding to Community Development Entities (CDEs) to deliver $5.5 billion in project investment to low-income communities.
Types of Projects Financed with NMTCs
NMTC funding can be used to finance a wide range of projects. These projects can include:
- Job training and creation – In 2020, the NMTC-funded projects generated 28,322 full-time equivalent (FTE) jobs and 16,768 temporary jobs. This financing also supported 152 manufacturing and industrial businesses and 1,465 small businesses, startups, and entrepreneurs.
- Manufacturing businesses
- Working capital
- New equipment
- Expanded, new, or shared industrial space
- Construction jobs to build facilities
- Business incubators
- Small business support programs
- Entrepreneurial training programs
- Manufacturing businesses
- Facilities to serve children – As a direct result of NMTC funding, 84,000 children will attend new facilities, including:
- Youth programs
- Childcare centers
- Early education facilities
- Expanded access to education – Over 78,000 people will take advantage of expanded or new facilities to receive different types of education.
- Adult education facilities
- College and university facilities
- Vocational training programs
- Financial education services
- Services for families – Nearly 200,000 people will visit new community amenities.
- Community centers
- Social service providers
- Fitness and recreational centers
- Arts facilities
- Expanded healthcare access – 82 projects received NMTC funding to expand healthcare access to 1.3 million people.
- 41 new Federally Qualified Health Centers
- Free clinics
- Meal provision – NMTC projects will provide an estimated 188 million meals to combat food insecurity and expand food access to over 10 million people.
- Food banks
- Food pantries
- Community food projects
- New grocery stores
- Farmers markets
- Housing – NMTC financing assisted with the renovation or construction of 15.4 million square feet of real estate and the renovation or construction of 2,164 housing units, including:
- Affordable housing
- Transitional housing
- Supportive housing
Popularity of Project Types
While some projects have a single focus, many of the projects funded by NMTCs are multi-faceted. For instance, a project may create jobs and housing or education and childcare. Approximately 43% or 118 projects in 2020 incorporate multiple components and strategies for improving the quality of life for residents of distressed communities.
According to the NMTC Coalition Progress Report, manufacturing was the most popular type of project that NMTCs funded, consistent with past findings. Approximately 32% of the 2020 projects, or 87 individual projects, involved the funding of manufacturing. The next most popular projects that used NMTC funding in 2020 were as follows:
- Healthcare – 12.5% or 34 projects
- Nonprofit hubs and social services campuses – 12.5% or 34 projects
- Mixed-use – 9.5% or 26 projects
We Can Work Together to Develop Communities
Savage & Associates is an economic development law firm providing sophisticated legal and business advice to clients interested in making significant changes in their communities. We advise developers, investors, nonprofit organizations, entrepreneurs, and anyone looking to effectuate change. You can contact our offices by calling 215.880.9441 in Philadelphia or 202.817.3941 in Washington D.C. to discuss your ideas with us. You can also find Savage & Associates online 24 hours a day, seven days a week, to get more information about the innovative financial tools that we can use to make your vision a reality. From New Markets Tax Credits to Historic Tax Credits, we can design the unique transaction best designed to achieve your objectives.