$75 Million in New Markets Tax Credits Awarded to Boston Community Capital
Thursday, February 23rd U.S. Department of the Treasury’s Deputy Secretary Neal Wolin, joined by U.S. Senator Mary Landrieu, U.S. Representative Cedric Richmond, and Community Development Financial Institutions Fund (CDFI Fund) Director Donna J. Gambrell, announced $3.6 billion in New Markets Tax Credit (NMTC) awards nationwide. Boston Community Capital received an award of $75 million in New Markets Tax Credits. This is the sixth award of this kind for BCC, bringing its total allocation authority to $428 million.
"The NMTC, established by Congress in December 2000, permits individual and corporate taxpayers to receive a credit against federal income taxes for making equity investments in investment vehicles known as Community Development Entities. The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. Community Development Entities must apply to the CDFI Fund to compete for this allocation authority. The 70 organizations receiving awards were selected from a pool of 314 applicants that requested over $26.7 billion. They are headquartered in 29 different states and the District of Columbia; but have identified principal service areas that will cover nearly every state in the country, as well the District of Columbia."