Since 2000, the New Markets Tax Credit (NMTC) has been established to help make the low-income and the disadvantaged areas an overall better place. This concept began in the late 1990s, but have been established in 2000 as part of the Community Renewal Tax Relief Act of 2000. With this program, investors are attracted to it because they are offered a 39 percent tax credit in federal income over an investment period of seven years. These tax credits are issued by the Community Development Entities (CDEs). This program goes out of its way in aiding the unfortunate communities that are normally overlooked by the conventional investor. And since 2000, billions have been allocated to various agencies and locations for the creation of more jobs, the sustainment of jobs, much more quality housing, etc.
CEI Capital Management LLC (CCML), for instance, is a subsidiary of the investment and lending company, CEI, which is located in Maine. This Community Development Entity (CDE) deploy capital through the New Markets Capital Investment program through the state of Maine, and under the US Treasury Department. CCML has allocated $869.6 million of these funds into 88 projects nationwide. And as result, $2.3 billion has been triggered within the low income communities. These projects are supportive of CEI’s triple folded bottom line, which is called the 3-E measures- environmental sustainability; social equity; and economic progress. With the CCML, the creation and sustainment of jobs, and the improvement in the quality of life are granted within rural, low income areas nationally, by them allocating funds to nonprofits and businesses. And as a result, the following have occurred:
-Jobs created/preserved- 4,553 permanent full time
-Construction jobs created- 3,130
-Property Developed- 1,593,860 sq ft
-Protected Land under protective easement- 855,596 acres
-Generated Electricity- 77 MW
-Generated Alternative Fuel- 1,195,000 GLs/year
-Housing Development- 524 units
-Capitalized- $8,230,000 (targeted loan funds), $1,000,000 (employee training), and $1,730,000 (educational programs)
Like many CDEs, CCML require recipients of NMTC projects to utilize community benefit agreements (CBAs). These community benefit agreements (CBAs) bring funding to programs or projects that may or may not be directly related to the NMTC project. Examples of this capital allocation from the CBA may go to LEED certification or scholarships for low income students, for instance. All in all, these CBAs are further means of achieving more goals for economic development for a positive and sustainable impact. For more information of this valuable program, CCML can be found at www.ceicapitalmgmt.com. They help low income communities, but they are even more focused on the rural areas.