New Markets Tax Credit News Briefs – October 2019

Monday, October 7, 2019

The Community Development Financial Institutions (CDFI) Fund announced Sept. 4 the opening of the calendar year 2019 allocation round of the new markets tax credit (NMTC). Applications are due Oct. 28. The CDFI Fund anticipates announcing 2019 NMTC awards in summer 2020. The CDFI Fund also posted the NMTC program application, the notice of allocation availability, an introduction to the NMTC program, an Awards Management Information System navigation guide, a frequently asked questions guide and an application roadmap presentation. Copies of these materials are available at www.newmarketscredits.com.

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The Senate Finance Committee Employment and Community Development Task Force on Temporary Tax Policy released its report Aug. 27, which included the NMTC. The task force didn’t make a recommendation on extending or making the NMTC permanent, but it did come to a consensus that these policies were important and encouraged permanent or long-term tax policy. Out of 16 comments made to the task force about the NMTC, only one suggested a repeal of the program. The committee acknowledged that Sen. Roy Blunt, R-Mo., co-sponsor of the New Markets Tax Credit Extension Act of 2019, advocated for consideration of that bill.

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St. Louis Development Corp. (SLDC) committed $5 million in NMTCs expand Evertrak, a railroad tie manufacturer in St. Louis. Evertrak is based out of a 30,000-square-foot facility that produces railroad ties from recycled plastic. The expansion will allow Evertrak to hire an additional 22 people in the next two years and quadruple production to 80,000 railroad ties by 2021. SLDC has also allocated $5 million in NMTCs to develop Jassen Johnson’s Jefferson Connector project. Johnson plans to rehabilitate five buildings and build a parking garage to service these spaces as well as future developments that he has planned. 

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Renovations on the former Bohn Motor Co. building in New Orleans are complete and the building is now Odyssey House Louisiana, a new organization that provides low-cost medical and behavioral health care to thousands of New Orleans residents. A ribbon-cutting ceremony was held Aug. 27 to unveil the new renovations and expansion. The $17.5 million project received new market tax credits equity from Goldman Sachs Urban Investment group and historic tax credit equity investment from Twain Financial Partners. 

Journal Category: 
New Markets Tax Credit
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