City of Dallas receives $55 million in New Market Tax Credits allocation to spur investment and economic growth in underserved areas
DALLAS – The Dallas Development Fund (DDF), a community development entity (CDE) managed by the Office of Economic Development, was awarded a $55 million allocation in New Markets Tax Credit (NMTC) to continue making impactful investments in underserved areas of Dallas.
“This allocation will make it possible for us to continue our work in bringing good-paying new jobs and needed services like healthcare, education, and childcare to residents living in historically underserved areas,” said Councilmember Tennell Atkins, Chairman of the City’s Economic Development Committee.
Created in 2009 by the Dallas City Council, DDF is a City-controlled non-profit organization that uses NMTC to provide funding for job-creating and social service projects in eligible low-income communities within the City of Dallas.
“The NMTC award is very competitive, but DDF has an impressive track record, receiving a total of five allocations dating back to 2009,” City Manager T.C. Broadnax said. “Beyond that, we are the only municipal CDE in Texas to receive its own NMTC allocation, ever.”
DDF’s previous allocations in 2009, 2012, 2014, 2017 total $185 million and have supported numerous projects throughout Dallas, with a focus on Southern Dallas. More information about the City’s NMTC program can be found here: https://www.dallasecodev.org/259/New-Markets-Tax-Credits
DDF has issued a Call for Projects to solicit projects to be considered for funding under this current allocation. Projects can be submitted online here. DDF will also accept projects on a rolling basis as funds remain available.
About the New Markets Tax Credit Program
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 18 allocation rounds and has made 1,461 awards totaling $71 billion in tax allocation authority. This includes $3 billion in Recovery Act Awards and $1 billion of special allocation authority used for the recovery and redevelopment of the Gulf Opportunity Zone. To learn more about the New Markets Tax Credit Program, please visit www.cdfifund.gov/nmtc
About the CDFI Fund
Since its creation in 1994, the CDFI Fund has awarded more than $5.5 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; the Native American CDFI Assistance Program; and the Small Dollar Loan Program. In addition, the CDFI Fund has allocated more than $71 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and guaranteed bonds for over $2.1 billion through the CDFI Bond Guarantee Program.