NEWARK, N.J. – U.S. Senators Bob Menendez and Cory Booker (D-N.J.) applauded the awarding of $45 million in New Markets Tax Credits (NMTC) to the Community Loan Fund of New Jersey (also called New Jersey Community Capital) to spur economic activity in lower income communities across the State. The award comes through the Department of Treasury’s Community Development Financial Institutions Fund (CDFI).
“New Markets Tax Credits are simply the seed money for growth and prosperity in our struggling neighborhoods,” said Sen. Menendez.
“They’re designed to attract new private sector investments in community facilities, affordable housing, small businesses and projects that create jobs and opportunities for local residents. I have long been a supporter of public-private partnerships like this because they work.”
“As a former mayor, I know how important CDFI’s are to strengthening local communities, generating economic growth and creating jobs by increasing access to capital and providing technical assistance to small businesses,” said Sen. Booker.
"I stand committed to supporting federal programs like this that help lift up some of our most undeserved communities while creating pathways of opportunities for all New Jerseyans.”
The New Markets Tax Credit Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a non-refundable tax credit against federal income taxes for making equity investments in vehicles known as Community Development Entities (CDEs).
CDEs that receive the tax credit allocation authority under the program are domestic corporations or partnerships that provide loans, investments, or financial counseling in low-income urban and rural communities. The tax credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. The CDEs in turn use the capital raised to make investments in low-income communities.
“New Market Tax Credits are crucial for New Jersey Community Capital’s mission to invest in underserved communities, helping us to attract private investments into projects that would otherwise not be feasible," said NJCC President Wayne T. Meyer.
"Since 2002, NJCC has deployed $116 million in NMTCs, which have generated over $500 million in development activity. These projects will create the jobs, services, and opportunities essential for low-income communities to thrive. We are very grateful to the CDFI Fund for this newest allocation, which enables us to fund critical projects that would not be possible without the support provided by these tax credits. We also thank Senator Menendez for his unwavering support and advocacy on behalf of New Jersey residents and communities and for being an ardent champion of CDFIs.”
According to NJCC, they plan to deploy the credits for projects including education facilities, health care centers, community centers, and mixed-use real estate projects in the target areas of Essex, Hudson, Mercer, Passaic, and South Jersey.
Today’s awards bring the total amount awarded through the New Markets Tax Credit Program to $50.5 billion. Historically, NMTC awards have generated $8 of private investment for every dollar invested by the federal government.
Since 2001, NMTCs have generated more than $42 billion in investments in low-income communities and businesses, resulting in the creation or retention of more than 500,000 jobs, and the construction or rehabilitation of more than 164 million square feet of commercial real estate.