July 15, 2020
WASHINGTON – U.S. Senator Roy Blunt (Mo.) today welcomed the U.S. Treasury Department’s announcement that U.S. Bancorp Community Development Entity, LLC (USBCDE) in St. Louis has been selected to receive $65 million in New Markets Tax Credit (NMTC) allocations. The NMTC program provides a 39% federal tax credit for businesses or economic development projects in areas with poverty rates of at least 20%, or median incomes at or below 80% of the area median.
“The New Markets Tax Credit program helps drive investment to underserved areas that need it most,” said Blunt. “Projects supported by the NMTC program have created new opportunities and improved the quality of life in under-invested urban and rural areas. In Missouri, the NMTC program has helped build new affordable housing and childcare facilities, created thousands of jobs, and expanded access to social services. I will continue working to build on that success by making the NMTC program permanent.”
In December 2019, Blunt and U.S. Senator Ben Cardin (Md.) secured a one-year extension with a $1.5 billion allocation increase for the NMTC program. Blunt and Cardin have also introduced legislation to permanently authorize the NMTC. Blunt led efforts to secure a five-year extension of the NMTC in the PATH Act, which was signed into law in 2015. The NMTC was originally authorized in 2000 as part of the Community Renewal Tax Relief Act.
According to the Treasury Department, every $1 in NMTC tax credits leverages $8 in private-sector investment. The NMTC program can be traced either directly or indirectly to the creation of more than 42,000 Missouri jobs between 2003 and 2019. The NMTC has benefited more than 400 Missouri businesses and economic revitalization projects, resulting in a total of $4.3 billion in new investments.