Brown Announces $105 Million in New Market Tax Credits for Cleveland-Area Community Development Entities to Create Jobs, Promote Economic Growth

Brown Helped Expand the New Market Tax Credit, which has Provided Millions to Ohio Communities;Ohio Received $385 Million Total through the Credit

WASHINGTON, D.C. — U.S. Sen. Sherrod Brown (D-OH) today announced $105 million for the two Cleveland community development entities to help attract private investment in economic development projects. The funding was awarded through the New Market Tax Credit (NMTC) program, which Brown has championed during his time in the Senate.

The entities received the following amounts:

  • Cleveland New Markets Investment Fund - $60 million
  • Northeast Ohio Development Fund - $45 million

“Community development entities across Ohio are working to spur growth in our communities and the New Market Tax Credit gives them the boost they need to attract private investment,” said Brown. “This credit will give these entities the ability to create jobs and lift up the local economy.”

The NMTC Program – operated by the U.S. Treasury Department’s Community Financial Development Institution – was established in 2000 with the goal of spurring revitalization efforts in American communities. NMTC provides tax credit incentives to Community Development Entities (CDE) so they can invest in low-income communities. Under the program, CDEs apply to the U.S. Treasury Department for the authority to raise a certain amount of capital from investors. Awardees are then given a tax credit that equals a percentage of their investment output over the span of seven years.

Brown has been a strong supporter of NMTC, which incentivizes investments in low-income communities. In December 2015, Brown helped secure a five-year extension of NMTC in the year-end tax bill.

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