BlueHub Capital today announces it has been awarded $65 million—the highest level of allocation—in New Markets Tax Credits (NMTC) from the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund). The allocation enhances BlueHub's ability to support job creation and economic development by investing in manufacturing businesses and community facilities in targeted low-income communities.
The New Markets Tax Credit program, run by the CDFI Fund, provides tax credits to community development organizations, like BlueHub, helping to leverage additional investment in underserved communities to create jobs and stimulate local economies.
“The New Markets Tax Credit program is one tool—a very powerful tool—that we use to reverse years of disinvestment and empower local actors on the ground to revitalize communities,” said Elyse Cherry, CEO of BlueHub Capital. “This new allocation will help boost economic activity in low-income communities as well as add new jobs and expand critical community services and programs available to low-income families.”
BlueHub Capital is now a 10-time NMTC recipient, totaling $608 million. Previous allocations have been deployed in 20 states across the U.S., ranging from:
- Community facilities such as a healthcare center, social service organization, and schools in Connecticut, Tennessee, North Carolina, and Massachusetts,
- Food manufacturers in Tennessee and Georgia,
- Commercial real estate redevelopment projects in Texas, North Dakota, Virginia and Connecticut.
BlueHub NMTC investments have leveraged over $1.6 billion in additional capital to their communities.
BlueHub is one of 102 Community Development Entities receiving awards this fiscal year and was selected from a pool of 197 applicants. Historically, NMTC Program awards have generated $8 of private investment for every $1 invested by the federal government.
Find the full list of recipients in the 2022 NMTC Award Book.
About BlueHub Capital
BlueHub Capital is a mission-driven, nonprofit community development finance organization focused on building healthy communities where low-income people live and work. BlueHub uses innovative financial tools to support projects that make communities more vibrant places to live through four distinct programs: BlueHub Loan Fund (community development financing), BlueHub SUN (foreclosure relief), BlueHub Energy (clean energy access) and One Percent for America (citizenship financing).
About the New Markets Tax Credit Program
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 financial intermediaries known as Community Development Entities (CDEs). 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% 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. Since the inception of the NMTC Program, the CDFI Fund has completed 19 allocation rounds and has made 1,563 awards totaling $76 billion in tax allocation authority. This includes $3 billion in Recovery Act Awards and $1 billion of special allocation authority used for the recovery and redevelopment of the Gulf Opportunity Zone.
To learn more about the New Markets Tax Credit Program, please visit www.cdfifund.gov/nmtc.