Latest news with #NewMarketsTaxCredit
Yahoo
08-08-2025
- Business
- Yahoo
Lee Health gains NMTC financing for new medical facility in US
Lee Health, a not-for-profit health system in the US, has secured a $6m New Markets Tax Credit (NMTC) allocation from UB Community Development (UBCD) on permanent financing for a new medical facility. The financing will facilitate the purchase, along with the installation of equipment in the facility in Fort Myers, Florida, aimed at bolstering healthcare services in a low-income community. The to-be-constructed facility will offer an 85,000ft² medical laboratory and data centre, which will enhance Lee Health's processing and testing capabilities. This expansion is expected to support the health system's existing operations and provide essential medical lab services to more than 100,000 people each year. Lee Health chief operating and financial officer Ben Spence said: "This investment allows Lee Health to expand critical infrastructure that supports the delivery of high-quality, efficient care across our region. "We are grateful for the opportunity to better serve our community, while also creating meaningful jobs and strengthening our ability to meet the growing needs of Southwest Florida." The project is set to create 30 new jobs while retaining 142 existing positions across the facilities of Lee Health. With a network that includes four acute care hospitals, two nursing units, a paediatric hospital, and multiple outpatient centres, the health system provides services for over two million patients annually. It is particularly focused on reaching medically underserved individuals, offering access to social services and primary care that might otherwise be sought in emergency rooms. UB Community Development president Alex Jones said: "With healthcare being so vital to a community and the uncertain future facing providers, UBCD is grateful to be able to support Lee Health in their undertaking.' Earlier this year, North Walton Doctors Hospital received $12.5m in NMTC funding through UBCD for its rehabilitation. "Lee Health gains NMTC financing for new medical facility in US" was originally created and published by Hospital Management, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
10-07-2025
- Business
- Yahoo
Trump Tax Law Is Surprise Boon for Affordable Housing Creation
(Bloomberg) — A set of provisions tucked into President Donald Trump's new tax-and-spending law has real estate developers and affordable housing proponents cheering – though some view it as a bittersweet victory. Singer Akon's Failed Futuristic City in Senegal Ends Up a $1 Billion Resort Are Tourists Ruining Europe? How Locals Are Pushing Back Can Americans Just Stop Building New Highways? Why Did Cars Get So Hard to See Out Of? Denver City Hall Takes a Page From NASA The law makes significant changes to the Low-Income Housing Tax Credit, the New Markets Tax Credit and Opportunity Zones, three tax-based community development programs that housing groups and private sector investors broadly favor. The revamp is expected to spur construction of new apartment buildings and renovation of older ones, with housing analysts saying they could create as many as 1.2 million more affordable units over the next ten years than they would have if the programs had remained the same. 'We think of it as the single largest increase in affordable rental housing resources in at least 25 years,' said Peter Lawrence, the chief public policy officer at Novogradac, a consulting firm with a focus on real estate. The new law increases some tax benefits investors can get for putting capital into affordable housing projects through the Low-Income Housing program. It also makes permanent other credits through the New Markets program, adding clarity for investors and developers seeking to make long-term plans. And it sets stricter standards for Opportunity Zones, in a move to prevent misuse and ensure that private investment dollars reach the low-income communities for which they were intended. Together, those measures are poised to incentivize more construction of affordable units in targeted neighborhoods and, in turn, ease some of the housing price pressure that has burdened an increasingly broad swathe of Americans. That makes the provisions something of an anomaly in a law that has become known for cuts to programs for the poor paired with giveaways to the wealthiest Americans. An analysis by economists at the University of Pennsylvania's Wharton School says the law will leave households in low-income and some middle-income categories 'worse off' overall. 'It's the gives and the takes,' said Jeff Monge, managing partner of Monge Capital, a real estate investment advisory firm specializing in public-private partnerships. 'The gives are these tax credit opportunities for investors to divert or make their investments that will eventually create prosperity for the communities that they invest in. But then you've got to pay for it. How are you paying for it? It ends up being a rollback on the very same communities that you're trying to help on the other side.' The changes come during a housing affordability crisis that experts say is the worst in recent memory. A June report by Harvard University's Joint Center for Housing Studies found a record high number of renters — almost 23 million — are considered 'cost-burdened,' meaning more than 30% of their incomes go to paying for housing and utilities. The crisis is being driven in large part by a lack of housing supply. The National Low Income Housing Coalition estimates a shortage of roughly 7 million affordable housing units across the US. While affordable housing measures are often thought of as a priority of the Democratic Party, these measures were palatable to Republicans in part due to how they were structured: They are tax breaks rather than funding allocations, and they lay responsibility for maintaining the quality of affordable housing units on the private sector. Under the law, investors cannot get their full tax credits or can have their value clawed back if the units they invested in fall into disrepair or are converted to market-rate units over a 15-year period. The law requires the units to remain affordable for another 15 years after that period ends, but that latter period is harder for the government to enforce. The provision to make the New Markets credits permanent was added in the Senate, where Republicans on the Finance Committee, including Idaho Senator Mike Crapo and Montana Senator Steve Daines, shepherded them through. 'This program has been supported by both parties for a long time,' said Bob Rapoza, spokesman for the New Markets Tax Credit Coalition, a trade group representing community development funds that use the tax credit. Together, the changes to the programs mirror legislation that housing advocates have been trying to get Congress to pass for a decade. The new law increases the size of tax credits awarded under the Low-Income Housing Tax Credit, and decreases the requirements for public funding by states and municipalities as a proportion of the overall funding package for an affordable housing development. This makes it easier for states, cities and other government entities to fund a greater number of development projects simultaneously while developers use more private financing sources, which are often cheaper than relying on the municipal bond issues. Meanwhile, an expanded pool of investors will be able to use the now-permanent New Markets Tax Credit. Community development organizations can tap into tax credits in the program to fund loans not only for housing development but also for new businesses, manufacturing facilities and cultural spaces. Rapoza's group estimates that over ten years the New Markets program alone could fund around 4,000 projects, add around 17,000 affordable housing units and create as many as 435,000 new jobs. Novogradac's Lawrence said these projections sounded reasonable. The tax law also made permanent Opportunity Zones, a program that gives investors tax breaks for putting money into projects in low-income areas that was created in 2017 as part of Trump's first tax-cut package. Opportunity Zones have drawn some criticism for failing to get private capital to the places where it is most needed and accelerating gentrification forces that push poorer people from their neighborhoods. That's because the program originally let governors designate areas that were near low-income census tracts, but not inside of them, as qualifying for the tax breaks. And it did not require any tracking or reporting on the program's impact. Novogradac's Lawrence said that the tweaks to the standards for Opportunity Zones could help make the program's investments more meaningful and also provide evidence of its worth, helping attract additional investors. A similar dynamic could occur in the New Markets program, according to Monge. Still, the experts noted potential roadblocks for the programs to generate the most possible benefit. Developers using the Low-Income Housing credit often rely in part on other public funding sources, including Community Development Block Grants from the Department of Housing and Urban Development. The Trump administration has sought to end that grant program. It has also proposed cutting nearly all of the budget for a Treasury Department office, the Community Development Financial Institutions Fund, that oversees the administration of the New Markets credit. Monge said he applauded the changes, but hoped they did not leave investors too much room to misbehave. 'We don't have a history of investors looking at doing good and well. There's a history of doing well,' he said. Will Trade War Make South India the Next Manufacturing Hub? 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Bloomberg
10-07-2025
- Business
- Bloomberg
Trump Tax Law Is Surprise Boon for Affordable Housing Creation
A set of provisions tucked into President Donald Trump's new tax-and-spending law has real estate developers and affordable housing proponents cheering – though some view it as a bittersweet victory. The law makes significant changes to the Low-Income Housing Tax Credit, the New Markets Tax Credit and Opportunity Zones, three tax-based community development programs that housing groups and private sector investors broadly favor. The revamp is expected to spur construction of new apartment buildings and renovation of older ones, with housing analysts saying they could create as many as 1.2 million more affordable units over the next ten years than they would have if the programs had remained the same.
Yahoo
14-05-2025
- Business
- Yahoo
Why Maryland needs a state new markets tax credit program
With a shaky economy and uncertainty at the federal level, Tom Coale and Ryan Dressler argue that now is the time for the state to invest in a state-level New Markets Tax Credit program. (Photo by Angela Breck/Maryland Matters) Maryland is a state with great economic opportunity, but it is not equally distributed. From Baltimore's disinvested neighborhoods to Western Maryland's struggling small towns and the Eastern Shore's underdeveloped commercial corridors, too many communities lack the resources and capital needed for sustainable economic growth. In the context of fiscal headwinds and uncertainty with the federal workforce, now is the time for the state to invest in a state-level New Markets Tax Credit (NMTC) program, modeled after the federal program. A $5 million annual investment each year for four years in the form of a tax credit (foregone tax revenue) — for a modest total of $20 million—would leverage significantly more private capital, spur job creation and provide a path forward for economic sustainability that is not dependent on federal spending. The federal NMTC program was created in the year 2000 to encourage tens of billions of dollars of private investment in low-income communities. It provides tax credits to investors who fund projects in economically distressed areas, such as business expansions, mixed-use developments and community facilities. The program has a proven track record of attracting private investment, creating jobs and revitalizing neighborhoods, and is often the source of the first dollars invested in a redevelopment area. Maryland Matters welcomes guest commentary submissions at editor@ We suggest a 750-word limit and reserve the right to edit or reject submissions. We do not accept columns that are endorsements of candidates, and no longer accept submissions from elected officials or political candidates. Opinion pieces must be signed by at least one individual using their real name. We do not accept columns signed by an organization. Commentary writers must include a short bio and a photo for their bylines. Views of writers are their own. From 2003-2023, the federal NMTC financed 115 projects in Maryland, creating 15,200 permanent full-time equivalent jobs. But even with this notable impact, Maryland is far behind its peers in utilizing the program. Through fiscal 2023, Maryland was ranked 19th among the states in NMTC allocation invested in projects located within the state at $1.3 billion, far below neighboring Pennsylvania, ranked ninth at $2.6 billion. Since 2007, 14 other states—including Ohio, Louisiana, Florida, Maine, Missouri, Illinois, and Nevada—have successfully implemented and renewed state NMTC programs. The federal program will award one of the largest amounts in program history in late 2025 – a full $10 billion of investment – but Maryland will need to develop a track record of success to compete. Leveraging Private Investment: One of the most compelling reasons for Maryland to adopt a state NMTC program is its ability to attract private capital. Historically, every $1 of NMTC allocation generates $8 in private investment. This means that Maryland's $5 million annual investment would yield $40 million of immediate program investment and encourage over $160 million of total private investment over the life of the program. Revitalizing Maryland's Most Distressed Communities: Many of Maryland's struggling communities lack the infrastructure and commercial activity needed to drive economic growth. A state NMTC program would target investments in areas with high poverty rates, low median incomes and high unemployment, ensuring that resources reach those who need them most. Baltimore City has numerous neighborhoods that would benefit from an infusion of investment to support small businesses, workforce development centers and community spaces. Western Maryland, which has struggled with the decline of manufacturing and coal, could use NMTCs to fund tech hubs, tourism-related businesses and health care facilities. The Eastern Shore, where agriculture and seafood industries remain dominant but undercapitalized, could see expanded processing facilities, cold storage infrastructure and commercial hubs. These investments would not only stimulate business activity but also create jobs, improve property values, and enhance community services. Job Creation and Workforce Development: The NMTC program has a strong track record of job creation. Projects funded by NMTCs often lead to construction jobs in the short term and permanent jobs in retail, manufacturing and services. For example, an investment in a new grocery store in a food desert would create construction jobs during development, retail jobs upon opening and supply chain jobs for distributors. A state-of-the-art vocational training center could train workers for high-demand industries such as health care, cybersecurity and clean energy, helping Marylanders gain skills and secure higher-paying jobs. A Maryland NMTC could also be structured to small startups, and projects with strong community benefits, ensuring that economic growth is both inclusive and equitable. Maryland has a choice: Continue relying solely on federal programs and risk losing out on critical investments, or take proactive steps to spur economic revitalization through a state New Markets Tax Credit program. Time is of the essence to position Maryland to fully participate in the large allocation of federal New Markets Tax Credit spending later this year. Maryland has long been a state of innovation and economic opportunity. A state NMTC program would reaffirm that commitment, ensuring that every community — urban, rural, and suburban — has the resources it needs to thrive.
Associated Press
15-04-2025
- Business
- Associated Press
RDP/MagPro Partnership Brings Production and Jobs to America
FOREST CITY, Iowa, April 15, 2025 /PRNewswire/ -- Rural Development Partners (RDP) awarded $17.5 million in New Markets Tax Credit (NMTC) financing to MagPro, LLC, a Nonferrous Metal Production and Processing corporation located in Camden, Tennessee. Funding will enable the purchase of parts necessary to construct 5-7 vacuum furnaces, driving expansion and growth for the company while creating an additional 150 quality jobs in rural Benton County. RDP allocation is the second in a two-phase business plan utilizing NMTCs, the first enabling MagPro to increase production by nearly 100% while creating over 50 new jobs. Employees receive specialized in-house training and workforce development opportunities unique to the industry, presenting a great opportunity for rural workers to economically further their skillsets. Benton County Mayor Mark Ward stated, 'The expansion will significantly benefit our local and nearby rural communities. MagPro's understanding of the value of meaningful contributions has made it an integral part of our economic development efforts, and we greatly appreciate their continued partnership and support.' The United States magnesium industry consumed $4.35 billion worth of magnesium in 2021, $4.58 billion in 2022, and is projected to reach $7.6 billion in sales by 2032. MagPro is building its cash reserves so it can undertake substantial increases in the purchasing of raw materials and inventory. There is, effectively, an unlimited amount of raw material available, but shortfall of those who can manufacture and recycle magnesium the way MagPro can. The company's immediate goal is to promote their current product line while extending its portfolio of products and services. Magnesium is primarily used in the aluminum and steel industries, also by die casters who make parts for the aerospace, automotive and medical industries, the military, and so much more. MagPro's business plan projects a 25% increase in the purchase of inventory and raw materials, resulting in a 40-50% increase in sales volume over the next five years. Their ultimate goal within the next 10 years is to become the largest primary magnesium producer in the United States, bringing jobs to America and substantially decreasing U.S. industry dependence on imports. 'RDP is proud to partner with MagPro on this very impactful project to enable them to strengthen their efforts in providing high-quality jobs in Camden and the surrounding area. China is currently the world leader in magnesium manufacturing and MagPro's expansion will greatly help reduce the USA's industry reliance on them.' – Dan Helgeson, CEO of Rural Development Partners MagPro MagPro LLC was founded in 2003 and is one of the world's largest magnesium recyclers, and second largest producer of Primary Magnesium in the United States. MagPro is the only magnesium manufacturer in the world that recycles low grade magnesium scraps, offering a number of tolling conversion programs for specification as well as specialty alloys tailored to meet individual customer needs. Rural Development Partners LLC Rural Development Partners is a Community Development Entity with a national service area eligible to apply for an annual allocation of Federal New Markets Tax Credits. From 2004 through 2024, RDP has won thirteen NMTC awards from the US Treasury totaling $816.7 million. Funding has helped over 50 businesses and nonprofits expand to provide quality jobs, economic impacts, and healthy food access in underserved communities. RDP seeks to serve and partner with businesses, non-profits, communities, and government entities that share its mission to build public-private partnerships for catalytic job growth in rural America. Learn more about RDP and the NMTC program by visiting our website or social media platforms at Facebook, LinkedIn, and YouTube. Media Contact: Rural Development Partners [email protected] View original content to download multimedia: SOURCE Rural Development Partners
