$1.39 billion can have quite an impact, especially when it’s invested directly into community development. But where does that kind of money come from? For Uptown Cincinnati, it came in the form of New Market Tax Credits (NMTCs). Since 2004, Uptown Consortium, Inc. (UCI) has been incrementally awarded more than $158 million in NMTCs. Those core tax incentives attracted an additional $129 million in direct investment and $1.39 billion in related investment in Uptown Cincinnati neighborhoods.
In 2016 alone, Uptown Consortium, Inc. (UCI) was awarded $48 million in NMTCs. The NMTC program, started in the 1990s and managed by the U.S. Treasury Department, incentivizes private capital investments in low-income communities by granting tax credits to an individual or company who makes equity investments in Community Development Entities like UCI. The tax credit, which is claimed over seven years, equals 39 percent of a corporation’s original investment.
In 2016, the Community Development Financial Institutions Fund awarded NMTCs to:
- 121 organizations nationwide
- 8 organizations in Ohio
- 3 organizations in Cincinnati
If you haven’t noticed the transformative changes, it’s OK. For many of us who enjoy Uptown every day, we’ve gotten used to the characteristic changes associated with a Renaissance. If you aren’t here often, I encourage you to leverage your next trip for a little sightseeing. Next time you drive to UC to catch the Bearcats in action, cheer on FC Cincinnati, visit one of the super-specialists in Cincinnati’s innovative health care hub or tour the Cincinnati Zoo & Botanical Garden, let me know what catches your eye. (@BethUptown)