New York, NY, September 10, 2021 (GLOBE NEWSWIRE) – The New York City Regional Center (“NYCRC”) is pleased to announce the award of $ 50 million in tax credits for new markets in the Community Development Financial Institutions Fund of the US Department of the Treasury. The funds will be allocated to NYCR-CDE, a community development entity managed by the NYCRC. As of 2016, the NYCRC has received a total of $ 165 million in new business tax credits from the US Treasury Department. To receive a New Market Tax Credit Award Award, the NYCRC had to demonstrate a mission and track record of providing investment capital to low-income communities.
The new allocation of $ 50 million marks the fourth New Market Tax Credit Award received by the NYCRC. In 2016, the NYCRC received a first prize of $ 45 million. In 2018 he got a second allotment of $ 20 million and in 2020 he got a third allotment of $ 50 million. The $ 165 million total grant provides a unique opportunity for the NYCRC to continue its mission of providing funding that creates jobs and spurs community revitalization in underserved areas of New York City. These allocations are among the first managed by an EB-5 regional center.
The New Market Tax Credit Program was created by Congress in 2000 with the goal of stimulating private investment and economic growth in low-income neighborhoods and rural communities without access to capital. Historically, low-income communities often have difficulty attracting investment. The New Markets Tax Credit program aims to break this cycle of divestment by attracting the private investment needed to reinvigorate struggling local economies. Private capital is incentivized to provide federal income tax credits to investors in return for equity investments in low-income neighborhoods.
NYCRC’s new $ 50 million New Market Tax Credit allocation will provide funding for community development projects that typically face funding challenges, such as health centers, schools, and community facilities located in communities. underserved areas of New York City.
“We are very pleased to receive our fourth allocation from the US Department of the Treasury,” said George Olsen, NYCRC senior co-manager. “This new $ 50 million New Markets Tax Credit will help boost New York City’s economic growth during these difficult times. We look forward to providing funding to underserved communities and continuing our role in supporting community revitalization. “
The 100 winning organizations for 2021 were selected from a pool of 208 applicants across the country and will receive a total of $ 5 billion in tax credits for new markets.
Over the past 13 years, the NYCRC has invested more than $ 1.5 billion of EB-5 capital in a wide variety of infrastructure and real estate projects in New York City. Much of this capital has been invested in underserved areas that need long-term economic growth. Examples include:
- $ 767 million to fund construction, redevelopment and infrastructure projects in Brooklyn, including seven projects totaling $ 339 million in the Brooklyn Navy Yard;
- $ 108.5 million to fund construction and redevelopment projects in Washington Heights (an Empowerment Zone in Upper Manhattan);
- $ 232.5 million to fund the construction of a public network of high-speed wireless infrastructure at New York City subway stations and along city streets; and,
- $ 220 million to fund construction work in the Bronx.
About the New York City Regional Center
The NYCRC was approved by the United States Citizenship and Immigration Services in 2008 to secure foreign investment in real estate and infrastructure projects under the EB-5 Immigrant Investor program. Congress created the EB-5 program to stimulate economic development through foreign investment. The program’s mandate is to use foreign investment to stimulate job creation while providing eligible foreign investors with the opportunity to become lawful permanent residents of the United States. The NYCRC was the first EB-5 regional center approved in New York.
Construction is complete in 19 of the NYCRC bids to date. These completed projects have successfully used NYCRC EB-5 funding to help build over 3.8 million square feet of new developments and renovations as well as infrastructure upgrades. The following are examples of completed projects using EB-5 capital from funds managed by NYCRC:
- A new wireless infrastructure network in New York subway stations;
- Redevelopment of a new cargo and animal care facility at John F. Kennedy International Airport;
- New sound stages and production support space at Steiner Studios, New York’s largest film and television studio;
- New head office for online grocer Fresh Direct in the South Bronx;
- Redevelopment of several unused buildings and modernization of surrounding infrastructure in the Brooklyn Navy Yard, the largest industrial park in New York City;
- City Point shopping complex in downtown Brooklyn;
- A new hotel and medical complex in Washington Heights;
- A new Wegman’s supermarket and industrial buildings in Brooklyn; and,
- Expansion of the Hutchinson Metro Center in the Bronx.
In addition to fueling economic development, NYCRC’s offerings have enabled more than 5,200 people to become permanent residents of the United States through the EB-5 Immigrant Investor program.
About the New Markets Tax Credit Program
Established by Congress in 2000, the New Markets Tax Credit program helps struggling communities attract private investment capital. This federal tax credit helps close the gap in project financing by allowing investors to make larger investments than they would otherwise. Communities benefit from jobs associated with investments in manufacturing, retailing and technology. Communities also benefit from better access to housing and public facilities in the areas of health, education and childcare.
Through the New Business Tax Credit program, the U.S. Treasury Department awards tax credits to community development entities (CDEs) through a competitive application process. CDEs are financial intermediaries through which investment capital flows from an investor to a qualified business located in a low-income community. CDEs use their authority to offer tax credits to investors in exchange for a stake in the CDE. The tax credit granted to the investor amounts to 39% of the cost of the investment and is claimed over a period of seven years. With these capital investments, CDEs can make loans and investments to companies operating in distressed areas that have better rates, terms and flexibility than the market.
Since 2001, New Market Tax Credits have generated more than $ 55.9 billion in investment in low-income communities and businesses, resulting in the construction of 63 million square feet of manufacturing space. , 98 million square feet of office space and 69 million square feet of retail space.
NYCR-CDE, LLC is an equal opportunity provider.
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