By Stephanie Sung
The future of the New Market Tax Credit (NMTC), a federal subsidy for businesses and development agencies to encourage investment in underserved communities, is now unclear as the program expired at the end of 2013. NMTC officially ended at the close of 2011 but was quickly renewed. There’s no sign of extension this time around, though senators Jay Rockefeller (D-West Virginia) and Roy Blunt (R-Missouri) introduced legislation to make the program permanent in June.
Next City’s Bill Bradley has been covering the successes of NMTCs and recently wrote on what one distressed community in Chicago now faces with its recent expiry:
… Read More
The loss of NMTCs won’t entirely scare off investors, but it could certainly give them pause. Southside Community Optimal Redevelopment Enterprise (SCORE), an organization on Chicago’s South Side, was awarded $20 million in credits in 2012. Joe Bakhos, SCORE’s community outreach director, expressed worry for how developers and investors will finance projects in low-income neighborhoods once the NMTC program expires.