The New Markets Tax Credit (NMTC) is one of many economic development tools available for community or neighborhood revitalization. The U.S. Department of Treasury program is one of the major ways communities across the country are improving neighborhoods and creating jobs in poorer areas. Atlanta announced this week that it is receiving $45 million in a second round of funding from the Treasury for its Atlanta Emerging Markets Inc (AEMI) initiative, managed by Invest Atlanta. The program had previously received a $50 million allocation last year.
“Atlanta’s New Markets Tax Credit program is an invaluable investment made directly into our city, bringing new community centers to our neighborhoods and funding high-impact businesses that employ Atlantans. Thank you to the Biden Administration and the Department of Treasury for continuing to recognize NMTC’s positive impact in our communities,” said Atlanta Mayor Andre Dickens.
The NMTC program was established by Congress in the year 2000 to attract investment to areas with low income and high unemployment, communities from the very rural to the very urban are eligible for the program, though AEMI is one of only four entities in the state to receiving funding this year. AEMI was created by Invest Atlanta in 2005 and is Treasury-certified as a community development entity. It specializes in providing financing for these types of projects. That financing is made possible by private equity contributed by investors, generally for large-scale projects – eligible projects are investments of $4 million or above.
“Through the City of Atlanta’s New Markets Tax Credit program, AEMI continues to make very meaningful investments in our communities that change not only neighborhoods but also the lives of residents living in them,” said Dr. Eloisa Klementich, president and CEO of Invest Atlanta. “Since 2010, AEMI has invested $313 million in 62 projects creating 3,754 new jobs, and we look forward to seeing this successful strategy continue with this latest allocation.”
A number of the projects from AEMI are high profile that visitors to or residents of Atlanta will recognize, such as the Flatiron Building restoration – an $11.2 million investment from J.P. Morgan Chase, or the Fort McPherson/Tyler Perry Studios redevelopment – a $7 million investment from SunTrust.
Recent investments include $13 million for the new Trees Atlanta headquarters in southwest Atlanta and a $10 million investment to renovate the Young Family YMCA on Campbellton Road. That YMCA serves more than 4,000 residents every year and offers healthcare programming, a food pantry and other community services.
To learn more about the program: http://atlantaemergingmarkets.org/new-markets-tax-credits/
