SLDC to Receive $40 Million in federal New Markets Tax Credits
To assist local development projects in the latest round of allocations
This article is 3 years old. It was published on September 7, 2021.
SEPTEMBER 2, 2021 – The St. Louis Development Corporation (SLDC) has been selected to receive $40 million in federal New Markets Tax Credits (NMTC) to assist local development projects in the latest round of allocations announced yesterday 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 eleventh award received by SLDC since 2004 for a total allocation amount of $493 million.
“This is fantastic news for the City of St. Louis,” said Neal Richardson, SLDC executive director. “New Markets Tax Credits have been a tremendous tool for us as we seek to build inclusive job growth and strengthen the City’s low-income neighborhoods.”
SLDC has funded 93 projects representing $445 million in NMTC allocation authority, leveraging more than $1.3 billion in total project costs. These investments have created and retained over 6,800 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 the creation of a small business revolving loan fund, the creation of the new Doorways headquarters and residential facility in the Jeff-Vander-Lou neighborhood, the creation of a new headquarters and campus for the Missouri Foundation for Health in Forest Park Southeast and for the conversion of a former grocery store into the new Guardian Angel Settlement Association offices and retail center in Fox Park.
SLDC is one of five allocates chosen from the St. Louis region. In all, 100 allocates were selected from 45 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.
St. Louis Development Corporation
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