Community Reinvestment Fund, USA Receives $65 Million New Markets Tax Credit Allocation
MINNEAPOLIS – November 17, 2016 – Community Reinvestment Fund, USA (CRF), a non-profit organization that empowers people to improve their lives and strengthen their communities, announced that its affiliate, National New Markets Tax Credit Fund, Inc., received $65 million in federal New Markets Tax Credit (NMTC) funds. Since the program’s inception in 2001, CRF has received combined federal NMTC allocations totaling $869.5 million.
CRF was one of 120 organizations selected from a pool of 238 applicants across the country to receive tax credit allocation authority under the 2014 New Markets Tax Credit Program. A total of $7 billion was awarded to stimulate investment and economic growth in low-income urban neighborhoods and rural communities nationwide.
“This continues to be a highly effective tool for CRF and the CDFI industry as we continue to grow our efforts to fill gaps in access to capital and level the economic playing field,” said Frank Altman, president and chief executive officer for CRF. “We are grateful to receive an allocation and look forward to working with our partners to deploy the capital to the projects and communities where it can have the greatest impact.”
The New Markets Tax Credit Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a non-refundable tax credit against federal income taxes for making equity investments in vehicles known as Community Development Entities (CDEs). Since the program’s inception, New Markets Tax Credit investments are estimated to have created nearly 600,000 new jobs and supported the construction of more than 160 million square feet of retail, manufacturing, and office space. As the communities benefiting from these investments develop, they become more attractive to investors, creating a ripple effect that spurs more investment.
CDEs that receive the tax credit allocation authority under the program are domestic corporations or partnerships that provide loans, investments, or financial counseling in low-income urban and rural communities. The tax credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. The CDEs in turn use the capital raised to make investments in low-income communities. CDEs must apply annually to the CDFI Fund to compete for New Markets Tax Credit Program allocation authority.
Community Reinvestment Fund, USA (CRF), a non-profit organization and certified Community Development Financial Institution (CDFI), is a national leader in bringing capital to underserved areas. Founded in 1988, CRF has injected more than $2 billion into low-income and economically disadvantaged communities around the country to help stimulate job creation and economic development, provide affordable housing, and support community facilities. CRF is headquartered in Minneapolis, MN. For more information, visit www.crfusa.com