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New Market Tax Credit Program Fosters Investment in Low-Income Neighborhoods

October 7, 2015
The California Statewide Communities Development Authority (CSCDA) is currently soliciting potential pipeline projects in connection with its 2015 application for New Markets Tax Credits. 
 
Through the California Statewide Communities Development Corporation, CSCDA’s subsidiary Community Development Entity, CSCDA has successfully received two awards totaling $73 Million in New Markets Tax Credit (NMTC) allocation and has successfully deployed this valuable subsidy into communities in need throughout the state.

CSCDA looks forward to continuing to provide a critically important funding gap to quality eligible projects throughout California next year. The NMTC program, passed by Congress in 2000, encourages investments in low-income communities by providing a tax incentive for community development lenders and the capital markets to invest in communities that historically have had poor access to capital.  Eligible project types include community facilities, charter schools, healthcare facilities, manufacturing facilities, operating businesses, and commercial real estate developments located within eligible low-income neighborhoods throughout California. NMTCs will generate up to 20 percent of the capital required for these projects and businesses. Often that is the difference that will make a desirable project feasible.
 
CSCDA is the joint powers authority conduit bond issuer created in 1988 by the League of California Cities® and California State Association of Counties and comprises over 500 cities, counties and special districts throughout California. CSCDA’s mission is to provide local governments and private entities access to low-cost, tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economic growth and improve the overall quality of life in local communities throughout California. 
 
If you are aware of any potential projects that could use New Markets Tax Credits or otherwise have any additional questions on how the program can help your community, please contact CSCDA’s Jon Penkower at (925) 476-5887.


 
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