MassDevelopment Awarded $40 Million in New Markets Tax Credits
Award Provides MassDevelopment Significant Opportunity to Invest in Community Development Projects Serving Low-Income Areas Across Massachusetts
WASHINGTON, DC - U.S. Senator Elizabeth Warren applauds the decision of the Community Development Financial Institutions (CDFI) Fund to award a New Markets Tax Credit (NMTC) of $40 million to MassDevelopment New Markets LLC. The Massachusetts delegation sent a letter to Treasury Secretary Jack Lew in support of MassDevelopment's application and initiatives to stimulate development in low-income communities.
The award will allow MassDevelopment to receive a credit against federal income taxes for making qualified equity investments in investment vehicles known as Community Development Entities (CDEs). These CDEs offer the credits to taxable investors in exchange for stock or a capital interest in the CDE. Substantially all of the qualified equity investment must in turn be used by the CDE to provide investments in low-income communities - investments that will help finance community development projects, stimulate economic growth, and create jobs.
"This award will help support important economic development efforts in communities throughout Massachusetts. The CDFI fund directly affects working families and small businesses and helps revitalize our neighborhoods," said Senator Warren. "MassDevelopment's work to help create jobs and to address factors limiting economic growth is an example of the good that comes from investments in community development programs."
MassDevelopment works with businesses, nonprofits, and local, state and federal officials and agencies to strengthen the Massachusetts economy. Both a lender and developer, MassDevelopment works with private- and public-sector clients to eliminate blight, prepare key sites for development, and increase the state's housing supply. MassDevelopment was awarded and fully utilized four prior NMTC allocations totaling $176 million in 13 different transactions, including an innovative $30 million fund for small businesses and non-profits.