St. Louis, MO– For the ninth time, the St. Louis Development Corporation (SLDC) has been selected to receive $35 million in federal New Markets Tax Credits (NMTC) to assist local development projects in the latest round of allocations announced today by the U.S. Treasury Department.
SLDC, the economic development agency for the City of St. Louis, administers the NMTC program for the City. Today’s announcement is the ninth award received by SLDC since 2004 for a total allocation amount of $418 million.
“This is fantastic news for the City of St. Louis,” said Otis Williams, SLDC executive director. “New Markets Tax Credits have been a tremendous tool for us as we seek to redevelop and strengthen the City’s low-income neighborhoods.”
SLDC has funded 55 projects representing $336 million in NMTC, leveraging more $1 billion in total project costs. These investments have created and retained over 5,000 jobs for St. Louisans and provide essential goods and services to City residents.
For each allocation process, SLDC issues a Request for Proposals (RFP) to attract quality projects with the most impactful use of the tax credits. An advisory group reviews and makes recommendations on which projects should receive the tax credits. The SLDC Board of Directors has the final approval.
Previous allocations have been used to assist projects including Big Brothers Big Sisters, the new headquarters of the Deaconess Foundation, the expansion of the Paraquad headquarters, the new development at 4220 Duncan in the CORTEX facility and the redevelopment of the historic International Shoe building.
SLDC is one of 2 allocatees chosen from the St. Louis region. In all, 73 allocatees were selected from 29 states, the District of Columbia and Puerto Rico.
The NMTC program is administered by the U.S. Dept. of the Treasury’s Community Development Financial Institutions (CDFI) fund. The program attracts private-sector capital investment into urban and rural low-income areas to help finance community development projects, stimulate economic opportunity, and create jobs in the areas that need them most. Established by Congress in December 2000, it permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in investment vehicles called Community Development Entities (CDEs). In turn, substantially all of the taxpayer’s investment must be re-invested in low-income communities. The credit provided to the investor totals 39 percent of the face value of the investment and is claimed over a seven-year credit allowance period.
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