NEW MARKETS - Central Bank of Kansas City
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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.