Enhanced Community Development, a subsidiary of Enhanced Capital, announced that it has been awarded $90 million in New Markets Tax Credits (NMTC) allocation. This award marks the sixth time Enhanced Community Development has been awarded New Markets Tax Credits.
The U.S. Treasury Department’s Community Development Financial Institutions (CDFI) Fund allocated the tax credits to Enhanced as part of $7 billion awarded to 120 organizations throughout the country this year.
The NMTC program, first enacted in 2000, helps to create jobs and stimulate economic growth in low-income areas by providing tax credits that attract private investment into qualified businesses and developments.
Enhanced Capital plans to use the allocation to continue building on its legacy of investing in low-income communities with a focus on the most distressed areas of the country. Because the company has a national service area, it may deploy the credits to help fund businesses and developments in any of the 50 states.
“New Markets Tax Credits provides critical capital to businesses and projects that create jobs and economic development in distressed communities throughout our nation,” said Richard Montgomery, Vice President of Enhanced Community Development. “It is exciting for all of us at Enhanced Capital to see the positive ripple effects this capital has on economically distressed communities. This award will help us continue to fulfill our mission of impactful public policy investing.”
“Enhanced Capital’s award of New Markets Tax Credits allows us to continue to make innovative investments in small businesses, creating jobs in rural and urban areas most in need of economic development,” said Shane McCarthy, CFO of Enhanced Capital. “Stronger communities leads to a stronger nation, and we are pleased that this award will help us continue that important, impactful work.”
The NMTC program helps economically distressed communities attract private investment capital, filling financing gaps by enabling investors to make more impactful investments than they otherwise could, creating jobs and additional economic opportunities in the process.
For every $1 invested by the federal government, the NMTC program generates more than $8 in private investment, according to the U.S. Treasury Department.
In announcing this year’s awards, Community Development Financial Institutions Fund Director Annie Donovan called attention to the benefits of New Markets Tax Credits for economically disadvantaged communities.
“For the past 15 years, we have seen how the New Markets Tax Credit improves the quality of life and economic prospects for low-income Americans,” Donovan said. “The historic $7 billion in tax credits awarded through the 2015-2016 round will support community projects and businesses nationwide.”
For more than 16 years, Enhanced Capital has partnered with public and private sector stakeholders to deploy capital that has lasting benefits for low-income communities and catalyzes additional economic activity. To date, the company has participated in hundreds of transactions nationwide that have deployed more than $1 billion to job-creating businesses, organizations and projects through a variety of public-private partnership programs.
About Enhanced Community Development
Enhanced Community Development (ECD), a subsidiary of Enhanced Capital, is a federally designated Community Development Entity focused on the financing needs of businesses and developments located in or serving low-income communities. ECD proudly participates in the federal New Markets Tax Credit (NMTC) program and a variety of state NMTC programs. ECD is an Equal Opportunity Provider. Since 2006, ECD has deployed more than $500 million in federal and state NMTC allocation to job-creating businesses and organizations in economically distressed communities.
About Enhanced Capital
Enhanced Capital, with primary offices in New York City and New Orleans, is a diversified, national asset manager that invests capital into small businesses, renewable energy projects, historic real estate rehabilitation, and affordable housing projects through federal and state incentive programs and other public policy investment strategies. It creates customized solutions for tax credit and mission-focused investors based on their investment needs, including CRA requirements, geographic footprint of investments, and investment product type.