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National report finds that New Markets Tax Credits continue to support economic growth and job creation

June 15, 2017New Orleans, LA

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The New Markets Tax Credit Coalition recently released its 2017 New Markets Tax Credit (NMTC) Progress Report, which highlights the program’s success over the previous year in bringing much-needed investment to low-income populations, stimulating growth throughout the nation and creating jobs in economically distressed communities.

“The 2017 New Markets Tax Credit Progress Report reaffirms that the NMTC program continues to be an effective way to help create economic opportunity and address unemployment and poverty through impact investing,” said Michael Korengold, president and chief executive officer at Enhanced Capital. “As we continue our work, Enhanced Capital remains committed to attracting much-needed investments to low-income and rural communities to spur economic growth and community development.”

The federal NMTC program, which began in 2000, stimulates private investment and economic growth in low-income, urban and rural communities by financing qualifying businesses and organizations located in or serving these areas. Through the program, Community Development Entities (CDEs) deliver billions of dollars in investments to help spur community development, create jobs and rejuvenate distressed communities.

The NMTC program continues to deliver on its promises for job growth and economic development nearly two decades since it was established. The NMTC Progress Report found that, throughout 2016, CDEs provided $1.8 billion in NMTC funding – financing 171 projects and creating more than 36,000 jobs in communities struggling with poverty and high rates of unemployment. The report also offers information on projects according to their locations and with a map breaking down projects by state.

Legislation has been introduced in the U.S. Congress to make the NMTC program a permanent part of the federal tax code. Bipartisan sponsors of this legislation recently wrote an opinion piece in The Hill newspaper in support of this effective program.

Since 2006, Enhanced Capital has deployed more than $500 million in federal and state NMTC allocation to job-creating businesses and organizations in economically distressed communities. In 2016, Enhanced Community Development was awarded its sixth federal NMTC allocation by the U.S. Treasury Department. Enhanced’s award of $90 million in NMTC allocation was one of the largest in the country.

More information about the 2017 NMTC Progress Report can be found online. For more information about how Enhanced Capital has directly benefited communities through impact investments, please read the 2016 Community Impact Report.