- Details
- By Brian Edwards
- Finance
The Community Development Financial Institutions Fund on Dec. 23 awarded $10 billion in New Markets Tax Credits to 142 organizations for 2024-2025, including nine organizations that committed to investing in Native areas.
The CDFI Fund allocated approximately $236.4 million specifically for investments in NMTC Native Areas, according to the award book released by the Treasury Department. The allocations represent part of the program's effort to direct capital to economically distressed communities across the country.
Treasury Secretary Scott Bessent said in a statement that making the NMTC program permanent provides long-term certainty for investors and communities, and requires the federal incentives to focus on “lasting job creation rather than the latest political trends.”
The NMTC award book didn't specify the nine organizations that committed to investing in Native areas, and four Native-focused organizations received awards totaling $250 million.
Native American Bank, based in Denver, received $75 million, according to the award book. Chickasaw Nation Community Development Endeavor LLC in Ada, Okla., secured $75 million. Oweesta Corporation in Longmont, Colo., received $55 million.
An affiliate of Kansas City, Mo.-based Travois, which partners with tribal nations to create affordable housing and economic development projects, received $45 million. 100% of the allocation will be deployed into tribal projects, mostly for non-metro projects in underserved NMTC states, according to a company spokesperson.
The New Markets Tax Credit Program provides federal tax credits to investors who make equity investments in Community Development Entities. These CDEs use the capital to make loans and investments in low-income communities with better rates and terms than typically available in the market.
Investors receive tax credits worth 39% of their original investment, claimed over seven years. The program requires that at least 85% of investment proceeds go to qualified low-income community investments, though all 142 allocatees in this round committed to investing at least 95% of funds in these areas.
The CDFI Fund has made 1,809 allocation awards totaling $81 billion in tax credit authority across 21 rounds since the program's inception. The program has invested $71 billion in low-income communities through fiscal year 2024.
Certified CDFIs received 45% of the allocations, totaling $4.625 billion. The remaining 55% went to non-CDFI entities.
The awards emphasize rural investment, with $2.417 billion designated for rural areas. Another $2.679 billion will go to minor urban areas, and $4.697 billion to major urban areas.
