CHEFA CDC Works to Provide CT Nonprofits Access to New Market Tax Credits
Did you know that the CHEFA Community Development Corporation (CHEFA CDC), a subsidiary of CHEFA, is a certified Community Development Entity and eligible to apply for Federal New Markets Tax Credits on behalf of nonprofits that serve Connecticut’s low-income communities?
In 2000, the Federal Government authorized the creation of the New Markets Tax Credit (NMTC) Program administered by the Community Development Financial Institutions Fund (CDFI Fund) and the Internal Revenue Service. The NMTC Program uses federal tax incentives to stimulate investment for economic and community development projects in urban and rural low-income communities. Investors that make an equity investment in certified financial intermediaries, called Community Development Entities (CDEs), receive a 39% tax credit over a seven-year period. The CDEs, in turn, use the proceeds from the equity investment to make a capital investment in low-income community businesses located in distressed communities.
CHEFA CDC is looking to expand the availability of New Markets Tax Credits for the State of Connecticut. Currently, organizations seeking tax credits must compete with other organizations outside of Connecticut for these tax credits. However, CHEFA CDC is the only community development entity committed to exclusively serving nonprofit organizations serving low-income communities. CHEFA CDC is preparing to seek an allocation of federal New Markets Tax Credits and is actively identifying qualified projects. If you would like to learn more about the program, or would like to discuss an upcoming capital project that your organization is considering, please contact Dan Kurowski at email@example.com.