Peters Applauds New Markets Tax Credit Program Investments in Michigan

Press Release

Today, U.S. Representative Gary Peters (MI-14) highlighted Michigan recipients of New Market Tax Credit (NMTC) program allocations, which will stimulate economic growth in underserved communities that typically lack access to investment capital. No Michigan community development entities (CDEs) received an allocation in last year's application process.

"As our economy continues to recover, we need to continue making investments that create jobs, grow small businesses and strengthen our middle class," said Rep. Peters. "The local development groups awarded credits today will invest directly in the Michigan economy, maximizing our economic growth and supporting local businesses. The New Markets Tax Credit program shows that smart policies and targeted investments in our communities will help Michigan's economy continue to grow."

NMTC recipients serving Michigan include Invest Detroit CDE with $28 million, Cap Fund New Markets LLC with $35 million and NCB Capital Impact with $43 million. A full list of recipients is available here.

"We are extremely pleased to have received this award at this critical time for Detroit's revitalization. NMTC is a vital financing tool to support transformative economic development and supports Invest Detroit's mission and collaborative efforts to promote development projects which provide jobs, and an improved quality of life for the communities it serves," said David Blaszkiewicz, President, Invest Detroit.

The NMTC program offers federal tax credits to support investments in economically distressed communities. Since the program started in 2000, more than $60 billion has been invested in underserved communities across the country, including $675 million in Michigan, with abouthalf of that amount in the City of Detroit. NMTC investments in Detroit have allocated $387 million for 26 projects. Statewide, there have been 169 projects and a total of $675.4 million in allocations, with the majority of the allocations going to commercial real estate rehabilitation.

Since 2003, NMTC investments have directly created over 350,000 jobs nationwide, and a recent analysis of U.S. Treasury data found that NMTC-financed businesses and jobs generate income tax revenue to fully pay for the tax credit.

Rep. Peters has been a strong advocate for the NMTC program since coming to Congress. In April, Rep. Peters hosted a roundtable discussion at the Gateway Marketplace in Detroit, which brought together community stakeholders for to discuss how the NMTC program can spur economic growth and job creation in Michigan. In March, he sent a letter to the Treasury Department supporting Detroit and Michigan-based community development entities' applications for the NMTC program.

Previously, Rep. Peters voted for theTax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 that extended the NMTC authorization through 2011 at a $3.5 billion funding level. Rep. Peters also voted for the American Taxpayer Relief Act of 2012, which extended the New Markets Tax Credit program for two years with $7 billion in allocations ($3.5 billion per year). He is also a cosponsor of the New Markets Tax Credit Extension Act of 2014 which will extend the NMTC program after 2013.

Source