The U.S. Treasury Department’s announcement that six Missouri-based organizations have been selected to receive a total of $290 million in New Markets Tax Credit (NMTC) allocations. The NMTC program provides a 39 percent federal tax credit for businesses or economic development projects in areas with poverty rates of at least 20 percent, or median incomes at or below 80 percent of the area median.
“The New Markets Tax Credit program drives investment and strengthens communities in areas that need it most,” said Blunt. “In Missouri, the more than 500 projects that have benefited from the NMTC program include everything from after-school programs and affordable housing to research hubs and local small businesses. I will continue working to make the NMTC program permanent, creating more opportunities and improving the quality of life in underserved areas.”
In March of 2021, Blunt and U.S. Senator Ben Cardin (Md.) introduced legislation to make the NMTC program permanent at a $5 billion annual allocation level, to index future allocations to inflation, and to exempt NMTC investments from the Alternative Minimum Tax. Blunt and Cardin introduced similar legislation in the previous Congress. The NMTC was originally authorized in 2000 as part of the Community Renewal Tax Relief Act. In 2020, under the leadership of Blunt and Cardin, the program was extended for five years at a $5 billion annual allocation level.
Following are the Missouri-based organizations benefiting from the latest round of NMTC allocations:
- $35 million to CBKC CDC, LLC, Kansas City
- $30 million to Heartland Regional Investment Fund, LLC, St. Louis
- $60 million to Legacy Economic Growth Fund, LLC, Springfield
- $55 million to MBS Urban Initiatives CDE, LLC, St. Louis
- $50 million to St. Louis Development Corporation, St. Louis
- $60 million to USBCDE, LLC, St. Louis
