The tool is administered by the U.S Department of Treasury designed to attract capital to projects that support low- and moderate-income households and communities.
Since 2005, Michigan Community Capital has received $510 million in New Markets Tax Credit allocations and has remained the only CDE deploying efforts entirely in Michigan at a state-wide level. These awards were invested in projects such as the Allen Neighborhood Center in Lansing, Sugar Hill in Detroit, Hudsonville Creamery expansion in Holland, Peterson Farms in Hart, and UP Paper in Manistique. To date, MCC has invested NMTC allocations into more than 40 projects across the state resulting in over 5,000 full-time jobs created or retained, more than 800 housing units established, and the development of 3.45 million square feet of commercial, retail and industrial space.
The New Markets Tax Credit Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a non-refundable tax credit against federal income taxes for making equity investments in financial intermediaries known as Community Development Entities (CDEs). CDEs that receive the tax credit allocation authority under the program are domestic corporations or partnerships that provide loans, investments, or financial counseling in low-income urban and rural communities. The tax credit provided to the investor totals 39% of the cost of the investment and is claimed over a seven-year period. The CDEs in turn use the capital raised to make investments in low-income communities. CDEs must apply annually to the CDFI Fund to compete for New Markets Tax Credit Program allocation authority. Since the inception of the NMTC Program, the CDFI Fund has completed 19 allocation rounds and has made 1,563 awards totaling $76 billion in tax allocation authority.
Since its creation in 1994, the CDFI Fund has awarded more than $5.2 billion to CDFIs, community development organizations, and financial institutions through: the Bank Enterprise Award Program; the Capital Magnet Fund; the CDFI Rapid Response Program; the Community Development Financial Institutions Program, including the Healthy Food Financing Initiative; the Economic Mobility Corps; the Financial Education and Counseling Pilot Program; and the Native American CDFI Assistance Program. In addition, the CDFI Fund has allocated $76 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and guaranteed bonds for over $1.8 billion through the CDFI Bond Guarantee Program.
To learn more about the CDFI Fund and its programs, please view the Fact Sheet or visit the CDFI Fund’s website at www.cdfifund.gov.
The Watershed – Root & Branch Sturgis
The Watershed – Root & Branch
The Watershed, a development by Root & Branch Real Estate, has redeveloped three underutilized sites downtown Sturgis by constructing a new modern, five-story, 25,000-SQFT mixed-use building. The roughly $11 million-project was supported with $10 million in New Markets Tax Credit allocation from MCC in addition to contributions from the City of Sturgis, MEDC, and Old National Bank. The CEO of Root & Branch is the former Mayor of Sturgis, and the President of GT Independent – a non-profit that works around the nation to help individuals with disabilities live independently.
MCC and other mission-driven partners provided New Markets Tax Credits to the Detroit People’s Food Co-Op in 2022. Detroit Food Commons is a partnership between the Detroit Black Community Food Security Network (DBCFSN) and Develop Detroit, and it involves the construction of a new two-story, 31,000-square-foot building located in Detroit’s North End neighborhood. The first floor of the newly constructed building features the Detroit People’s Food Co-op, a community owned grocery store selling healthy, locally sourced food, and a 50-seat café.
Michigan Community Capital and other mission-driven partners supported the redevelopment and expansion of the Allen Neighborhood Center (ANC) in 2020. The project, including the new development of Allen Place apartments, redeveloped an existing, two-story building into a three-story, mixed-use development. A small portion of the existing two-story building was occupied by ANC, a community-based non-profit providing a breadth of community services within the region.
MAC Trailer Enterprises (MAC Trailer) is expanding its manufacturing capabilities in Mt. Pleasant, Michigan with the support of $7 million in New Markets Tax Credit (NMTC) allocation from Michigan Community Capital (MCC). The expansion includes the purchase of a 105,000-square-foot manufacturing facility located at 1799 Gover Parkway in Mt. Pleasant as well as new equipment anticipated to increase production by more than three times the current capacity.
MAC Trailer Manufacturing in Mt. Pleasant, Michigan
Hudsonville Creamery in Holland, Michigan
Hudsonville Creamery
Michigan Community Capital and other mission-driven partners supported an expansion of Hudsonville Creamery in Holland, Michigan in 2021. The project included construction of 40,000-square-foot new manufacturing space, the renovation of the cold dock, a new cold storage facility and a new production line