Empowering Communities Through New Markets Tax Credits
Empowering Communities Through New Markets Tax Credits
Unlocking Potential with New Markets Tax Credits
Equity and growth are essential for vibrant, thriving communities. With New Markets Tax Credits (NMTC), businesses and organizations can access critical financing to invest in low-income or distressed communities. Whether you're on a mission to expand your operations, launch a new project, or revitalize a neighborhood, NMTCs can provide the boost needed to make it happen.
Fostering Economic Growth & Opportunity
We leverage New Markets Tax Credits to fuel socially impactful projects. These projects create jobs and enhance services in some of the most economically isolated and distressed neighborhoods across our investment area.
Through the NMTC program, private capital is directed toward these high-impact, mission-driven initiatives. We’ve allocated over $600 million in NTMCs since 2007, and we are committed to driving meaningful change where it’s needed most.
“New Markets Tax Credits have proven to be one of the most effective tools to make critical community development projects successful, to help achieve our mission, and to improve communities and the lives of residents in the areas we serve.”- Steve Giles, President of Central Bank of Kansas City
Understanding New Markets Tax Credits
The NMTC program was enacted in 2000 by the federal government. It’s an initiative intended to stimulate private investment and economic growth in low-income urban and rural communities. These communities typically lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies.
Offering a 39% federal tax credit over seven years, the NMTC program attracts private-sector capital to economically distressed areas where there are new markets and opportunities for business growth. NMTC funds can be used for infrastructure development, job creation and business growth and other transformative projects.
How NMTCs Can Help
Where NMTCs are Commonly Used
New Markets Tax Credit financing is frequently used to support projects that strengthen local economies and expand access to essential services. Common uses include:
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Commercial real estate development
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Owner-occupied business facilities
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Community-serving facilities and developments
These investments help bring needed services, quality jobs, and long-term economic activity to underserved communities.
How NMTCs Create an Impact
- When businesses and organizations utilize New Markets Tax Credits, the ripple effects are significant. Jobs are created, essential services are expanded, and neighborhoods are revitalized. Through strategic investments, we’ve seen firsthand how these credits can turn bold ideas into realities that benefit communities.
- Since the inception of the NMTC program, we've closed financing for over 72 projects with total project costs exceeding $1.6 billion, and have deployed over $600 million of NMTC allocation into Illinois, Missouri and Kansas-based communities.
- Among our many notable NMTC projects was financing the pediatric wing for Samuel U. Rodgers Health Center – a 65,000 square foot expansion that will provide care for an additional 4,500 children each year and increase the capacity for adult and women’s health services.
“With your support, we’re excited to expand our mission with the new Pediatric Wing, reinforcing our commitment to delivering high-quality, compassionate, and affordable healthcare to the most vulnerable in our community.”
- Bob Theis, Chief Executive Officer of Samuel U. Rodgers Health Center
Empowering Communities Through Strategic Investments
From community centers to healthcare facilities, NMTCs have fueled countless impactful projects. Central Bank of Kansas City is proud to be a part of these success stories, demonstrating what’s possible when businesses and communities work together.
Operation Breakthrough
An $11 million NMTC allocation allowed Operation Breakthrough to expand its campus, bringing 300 additional K-8 students and introduced MakerCity, where students develop 21st-century skills in STEM, the arts and other academic subjects through hands-on learning.
Impact:
- Increased early learning education
- Increased before and after school learning
- Increased adult/caregiver education
- Increased job training programs
Samuel U. Rogers Health Center
Samuel U. Rodgers Health Center received $15 million in NMTC allocation from Central Bank of Kansas City, to support the construction of a new pediatric wing and parking structure - a 30,000-square-foot expansion which will enable them to serve 4,500 additional children each year.
Impact:
- Job creation in the local community
- Address primary care shortage for women, infants and children
- Increased access to behavioral health and dental care
- Increased access to health care for the area’s most vulnerable population.... children.
Orange EV
With a $17.25 million NMTC allocation, Orange EV moved its HQ and manufacturing facility to a new 437,339 sq. ft. building in Kansas City, KS. Here, they can increase production of zero-emission industrial electric terminal trucks, supporting the EPA’s push for zero-emission vehicles by 2030.
Impact:
- Job creation in the local community including internships for students
- Quality production and manufacturing jobs for low-income residents
- Sustainable manufacturing growth
- Workforce training for skills such as forklift driving and vehicle technology
Have a development that could benefit from NMTC financing? Apply to connect with our team and explore potential funding opportunities.
Start a Conversation
For more information about New Markets Tax Credits, please contact our team, who is happy to assist you.