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New Market Tax Credit – Fostering Investment in Low-Income Neighborhoods

March 10, 2017
The California Statewide Communities Development Authority (CSCDA) is currently soliciting potential pipeline projects in connection with its 2017 application for New Markets Tax Credits.
 
Through the California Statewide Communities Development Corporation, CSCDA’s subsidiary Community Development Entity, CSCDA has successfully received three awards totaling $143 million in New Markets Tax Credit (NMTC) allocation and has successfully deployed this valuable subsidy into communities in need throughout the state. CSCDA looks forward to continuing to provide a critically important funding gap to quality eligible projects throughout California next year.
 
The NMTC program, passed by Congress in 2000, encourages investments in low-income communities by providing a tax incentive for community development lenders and the capital markets to invest in communities that historically have had poor access to capital. Eligible project types include community facilities, charter schools, healthcare facilities, manufacturing facilities, operating businesses, and commercial real estate developments located within eligible low-income neighborhoods throughout California. NMTCs will generate up to 20 percent of the capital required for these projects and businesses. Often that is the difference that will make a desirable project feasible.
 
If you are aware of any potential projects that could use NMTCs or otherwise have any additional questions on how the program can help your community, please contact Jon Penkower of CSCDA at (925) 476-5887. 
 
CSCDA is a joint powers authority conduit bond issuer created in 1988 and is sponsored by the League of California Cities® and the California State Association of Counties and is comprised of more than 500 cities, counties and special districts throughout the state. CSCDA’s mission is to provide local governments and private entities access to low-cost, tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economic growth and improve the overall quality of life in local communities throughout California. Visit CSCDA’s website for additional information on the ways in which CSCDA can help your city.


 
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