The federal New Markets Tax Credit Program (NMTC), enacted in 2000 as part of the Community Renewal Tax Relief Act, was designed to stimulate private investment and economic growth in low-income urban neighborhoods and rural communities. Through a joint venture with City First Bank, CSDC received a $40 million allocation of the federal income tax credits in 2006. These tax credits were fully sourced to investors as part of the permanent financing of facilities for five charter schools in four states and Washington, D.C.
U.S. Treasury Secretary Tim Geithner highlighted one of CSDC’s innovative NMTC projects in particular in his May 2009 testimony before the U.S. House of Representatives’ Treasury Appropriations Subcommittee:
“One example can be seen right here in the Anacostia neighborhood of Washington, DC. City First Bank of DC, a local CDFI, and Charter Schools Development Corporation partnered to provide a $13.3 million New Markets Tax Credit for the Thurgood Marshall Academy, the city’s first charter school focused on law, serving 360 students in grades nine through twelve and achieving a 100 percent college acceptance rate for its first three graduating classes.”
CSDC has fully sourced (sub-allocated) its original $40 million allocation for the projects described below benefiting the schools named and, unfortunately, has no additional capacity under this program at this time. However, CSDC administers several other programs: find out if one is right for you!