The St. Louis Development Corporation (SLDC) has been selected to receive $75 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.
"This is the largest allocation of New Markets Tax Credits awarded to SLDC to date," Mayor Francis Slay said. "This important economic development tool will allow the City to assist key projects that otherwise wouldn't get off the ground;projects like charter schools, health facilities and child care providers that not only strengthen communities but also add jobs."
SLDC, the economic development agency for the City of St. Louis, administers the NMTC program for the City. Today's announcement is the eighth award received by SLDC since 2004 for a total allocation amount of $383 million.
"This is fantastic news for the City of St. Louis," Otis Williams, SLDC executive director, said. "New Markets Tax Credits have been a tremendous tool for us as we seek to redevelop and strengthen the City's neighborhoods."
SLDC has funded 47 projects representing $303 million in NMTC, leveraging $935 million in total project costs. These investments have created and retained more than 4,800 jobs for St. Louisans and continue to 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 headquarters expansion, the creation of the National Blues Museum, the expansion of the Paraquad headquarters, the 4260 Forest Park development in the Cortex Innovation Community, and the redevelopment of the historic Arcade building.
SLDC is one of three allocatees chosen from the St. Louis region. In all, 120 allocatees were selected from 36 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.