Housing Vermont has been awarded a $40 million allocation of New Markets Tax Credits (NMTCs) by the Department of the Treasury to continue its economic development work in low income areas of the state. The award was announced in a joint statement released by Senator Patrick Leahy, Senator Bernie Sanders and Representative Peter Welch.
“Our NMTC program has generated substantial momentum so this award will allow us to expand the successful program without interruption,” said Housing Vermont President Nancy Owens.
Under the NMTC program, investors receive federal tax credits in exchange for making investments in eligible economic development projects. These business and real estate investments provide more favorable terms and conditions than the market typically offers. In general, for every $1 invested by the federal government, the NMTC Program generates over $8 of private investment.
Competition for the NMTC awards was stiff. The Community Development Financial Institutions Fund, the arm of Treasury which operates the program, received applications from 282 organizations requesting a total of approximately $21.9 billion in allocations. Only 85 applicants (30 percent of the total applicant pool) were awarded allocations which ranged from $15 million to $80 million.
Housing Vermont which operates the NMTC program through its affiliate Vermont Rural Ventures, has received two previous NMTC awards of $30 million and $35 million. These allocations have been used to finance investments across Vermont including:
- Expansion of Weidmann Electrical Technologies in St. Johnsbury
- New campus and programs for Laraway Youth and Services in Johnson
- DEW’s construction of the new Community College of Vermont building in Rutland
- Construction of the Enosburg Health Center in Enosburg
- Expansion of the Commonwealth Dairy Facility in Brattleboro
- Construction of the Barre City Center
“Conventional wisdom said that it was nearly impossible to make the complex New Markets Tax Credit program work in a small, rural state,” Nancy said. “Our track record clearly demonstrates otherwise. We’ve shown that NMTC can advance a range of essential community projects in Vermont, each a key to providing jobs and services.”
Prospective NMTC projects generally need to be located in qualified census tracts. In Vermont those areas include much of northern Franklin, Lamoille, Essex and Orleans counties as well as parts of Burlington, St. Albans, Newport, Bennington, Rutland, Springfield, Montpelier, Barre, St. Johnsbury, Brattleboro, and Bellows Falls.
Those interested in learning more about Housing Vermont’s NMTC program should visit the Vermont Rural Ventures tab on this site or contact Beth Boutin, Senior Investment Officer, at (802) 863-8424.