CDFI Announces Recipients of 2012 New Markets Tax Credits– April 24, 2013

The Community Development Finance Fund (CDFI) hasannounced the 2012 award recipients of $3.5 billion in New Markets Tax Credits (NMTC) allocations. Congratulations to all the winners, a complete list of which can be viewed from our NMTC page.

What is the NMTC Program?

The NMTC Program was established by Congress in 2000 to spur new or increased investments into businesses and real estate projects located in low-income communities. The NMTC Program permits corporate investors a tax credit against their federal income tax in exchange for making equity investments in CDEs, which are specialized financial institutions. Those institutions deploy the invested capital into projects that are granted rates and terms significantly below market. This capital infusion is often the final piece of the “capital stack” necessary to make projects in distressed communities viable. The credit totals 39 percent of the original investment amount and is claimed over a period of seven years (five percent for each of the first three years and six percent for each of the remaining four years).

Cohen & Company, along with our NMTC partner Ariel Ventures, has been an active participant in the NMTC program since its inception. Together we have worked on over $1.5 billion of NMTC transactions.

For more information regarding the NMTC program, contact Chris Madison, Dave Sobochan, Mike McGivney or Tony Bakale of Cohen & Company at 216.579.1040. You can also contact Radhika Reddy, Irene Zawadiwsky or Lynn Selzer of Ariel Ventures at 216.344.9441.

 

Cohen & Company is not rendering legal, accounting or other professional advice. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts and circumstances.