St. Louis’ economic development arm and three other locally based companies have received a combined $225 million in federal New Markets Tax Credits designed to spur investments in lower-income areas.
Thursday, the U.S. Treasury Department’s Community Development Financial Institutions Fund announced $3.5 billion in federal credits had been allocated to 73 community development entities out of 214 applicants.
The St. Louis Development Corp. again received a $35 million federal allocation, the same as it received last year. The office has consistently won allocations from the Treasury, receiving over $400 million since 2004. Local nonprofits and developers apply to SLDC for the federal credits as a means of financing projects and programs.
Three other locally based organizations received federal new markets credits:
- MBS Urban Initiatives CDE LLC, an arm of St. Louis-based affordable housing developer and operator McCormack Baron Salazar, received $60 million.
- Midwest Industrial Redevelopment Fund LLC, the new markets arm of bank CIBC US, received $60 million.
- USBCDE LLC, U.S. Bank’s community development entity, received $70 million.
The $225 million is the most awarded to local institutions since 2015, when $300 million was allocated to local institutions. The tax credits are used to raise equity investments for projects in lower-income areas. Investors receive 39 percent of the cost of the investment, claimed over a seven-year period.