WASHINGTON, DC – This week, Congressman Dave Joyce (OH-14) announced that the U.S. Department of Treasury has allocated the Cleveland New Markets Investment Fund II, an affiliate of the Greater Cleveland Partnership, a New Markets Tax Credit (NMTC) worth $35 million.
The NMTC is a nonrefundable tax credit intended to encourage private capital investment in eligible, impoverished, low-income communities, both in urban and rural areas. NMTCs are allocated by the Community Development Financial Institutions Fund (CDFI), a bureau within the U.S. Department of the Treasury, under a competitive application process. Earlier this month, Joyce wrote to Treasury Secretary Janet Yellen in support of the Cleveland Development Advisors’ application. Since 2000, these tax credits have mobilized over $5.5 billion in investments in Ohio’s distressed areas.
“This is exciting news for our northeast Ohio communities,” said Joyce. “These tax credits will help the Cleveland New Markets Investment Fund target projects that directly address challenges such as food security and access to health care, and create quality, permanent jobs. Over the years, I’ve seen the positive and lasting impact these kinds of projects have had on northeast Ohio families and am proud to have helped secure the tax credits that support them. I look forward to seeing this continued investment spur further economic growth in our communities.”
“We greatly appreciate Congressman Joyce and the rest of the Ohio delegation for their ongoing support of the New Markets Tax Credit Program,” said Baiju Shah, President and CEO of the Greater Cleveland Partnership. “In the 20 years of existence, the program has helped to drive private investment capital into economically distressed urban and rural communities. Greater Cleveland Partnership, and our real estate affiliate Cleveland Development Advisors, use the program to support manufacturing, technology, healthcare, retail, housing, and many other projects.”
Joyce is a cosponsor of H.R. 1321, the NMTC Extension Act. This bill would make the NMTC permanent in order to give investors additional confidence that support from this program will continue, increasing the effectiveness of the credit for investors funding multi-year projects.