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Independent report finds New Markets Tax Credit program exceeds goals, spurs economic growth in distressed communities

August 11, 2017New Orleans, LA

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A new independent report commissioned by the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) found that the New Markets Tax Credit (NMTC) Program is meeting and exceeding program and compliance requirements and continuing to attract job-creating investments in economically distressed communities.

Fund Director Annie Donovan hailed the NMTC program for its continued success in a public statement on the CDFI Fund’s website.

“The report released today demonstrated that New Markets Tax Credits are being used as Congress intended: to attract private investment into projects in economically distressed communities,” Donovan said. “It also documents the ways that Community Development Entities (CDEs) that utilize the program are meeting and generally exceeding NMTC Program requirements.”

The report analyzed the NMTC program’s compliance, measured accountability, recommended best practices and examined the program’s overall success in driving much-needed economic growth in low-income communities. Among its results, the 66-page report found that many of the business projects and financial investments in some of the nation’s most distressed communities “would not be possible without the NMTCs.”

Additionally, the report found that CDEs were fully compliant with program and industry regulations, further praising CDEs for going “beyond the compliance requirements, with most providing capital that is more flexible than required by the Allocation Agreement and investing in communities that are more highly distressed than mandated by the statute.” Congress established the NMTC program in 2000 to encourage additional investment in low-income communities.

Since 2002, the CDFI Fund has worked with Community Development Entities like Enhanced Community Development, a subsidiary of Enhanced Capital, to provide more than $50 billion in allocation to drive community development and economic growth in underserved, underfunded areas.

In 2016, Enhanced Capital was awarded its sixth federal New Markets Tax Credit allocation, and the company is proud to be a part of the ongoing, job-creating NMTC program legacy.

For additional information, you can read the entire Compliance Review of New Markets Tax Credit Program report.