The Treasury Department’s Community Development Financial Institutions Fund today announced the recipients of $5 billion in new markets tax credits to spur investment in low-income urban and rural communities. The tax credit allocations were awarded to 100 community development entities.
The new markets tax credit program has generated $8 of private investment for every dollar invested by the government, the CDFI fund said.
“Many of the communities that will receive these funds have confronted economic challenges over many decades. Challenges which have been made more difficult by a lack of investment. It’s critical that Congress sustain these investments over time by making the New Markets Tax Credit Program permanent,” said Treasury Secretary Janet Yellen.
Today’s recipients are expected to make more than $1 billion in new markets tax credit investments in non-metropolitan counties, and about 20% of the total investments will be made in rural areas. Through the program, recipients have deployed $56 billion in investments in low-income communities and businesses, including the creation of almost 871,000 jobs through the end of fiscal year 2020.