WASHINGTON — U.S. Senator Roy Blunt (Mo.) today touted the U.S. Treasury Department’s announcement that four Missouri-based organizations have been selected to receive a total of $215 million in New Markets Tax Credit authority for 2017. The NMTC program provides a 39 percent federal tax credit for businesses or economic development projects in areas with poverty rates of at least 20 percent, or median incomes at or below 80 percent of the area median.
“The New Markets Tax Credit Program is an important tool for drawing investment to communities that need it most,” Blunt said. “In Missouri, the NMTC has benefited 250 businesses and economic revitalization projects, creating thousands of jobs and resulting in a total of $3.4 billion in new investments. The NMTC allocations announced today will go a long way toward expanding opportunity and improving the quality of life for families in our state and across the nation.”
In February 2017, Blunt and U.S. Senator Ben Cardin (Md.) introduced the bipartisan New Markets Tax Credit Extension Act to permanently authorize the NMTC.
Blunt led efforts to secure a five-year extension of the NMTC in the PATH Act, which was signed into law in 2015. The NMTC was originally authorized in 2000 as part of the Community Renewal Tax Relief Act.
According to today’s announcement, U.S. Bank’s community development entity, USBCDE LLC, and St. Louis Development Corporation, both of which are based in St. Louis, were awarded $70 million and $35 million in tax credits, respectively. Kansas City-based organizations CBKC CDC, an affiliate of Central Bank of Kansas City, and AltCap were each awarded $55 million in tax credits.
Click here for more information on the NMTC program and the allocations announced today.