NEW MARKETS - Central Bank of Kansas City

For more information
Please contact:
William (Bill) Dana, Jr.
President/CEO of
Central Bank of Kansas City,
816-483-1210
or visit us on the web at:
www.centralbankkc.com
2301 INDEPENDENCE BLVD, KANSAS CITY, MO 64124
CENTRAL BANK OF KANSAS CITY
NEW MARKETS
TAX CREDIT PROGRAM
Stimulating economic growth
and creatING jobs by attracting
private-sector capital investment
into low-income areas.
The New Markets Tax Credit Program (NMTC)
This program was established by Congress
in December 2000 as a credit against federal
income taxes for making qualified equity
investments in Community Development
Entities (CDE’s). The credit provided to
the investor (either corporate or individual)
totals 39% of the cost of the investment and
is claimed over a seven-year period. The
CDE’s are charged with making investments
into qualified projects or businesses in lowincome areas.
The program is overseen by the
Community Development Finance
Institution (CDFI) Fund, an arm of the
US Treasury Department. Rules regarding
the types of businesses that can be funded
and the types of funding that can be
provided are extensive and it is a function
of the CDE receiving the allocation
to make sure that the project
receiving funds
is compliant with the program. It is
important to find out from your CDE if
your project is eligible for their resources.
Central Bank of Kansas City President
Bill Dana said allocation of the funds will
be targeted to
“The New Market Tax Credit specific projects.
(NMTC) Program is great
The New Market
for Kansas City. It will help Tax Credit
Program will
the City with its economic
be used to fill
development efforts in
financial gaps
neighborhoods that need
in high-impact
areas. The use of
it most.”
these funds will
— Mark Funkhauser,
be determined
Mayor, Kansas City, MO
on a per project
basis by a seven member advisory board. There are two important principles behind
the New Markets Tax Credit. First, there
are good business opportunities in lowincome communities and these communities
constitute a new market opportunity for the
private sector. Secondly, a modest federal
subsidy can provide the “nudge” needed to
persuade the private sector to invest in these
new markets.