Mascoma Community Development (MCD) is proud to announce an award of $50 million in New Markets Tax Credit (NMTC) authority from the U.S. Treasury’s Community Development Financial Institution (CDFI) Fund.
The NMTC program allows MCD to direct capital toward underserved communities through financing high-impact, mission-focused projects nationwide with a primary focus on New Hampshire, Vermont, Maine, New York, and Massachusetts.
This New Markets Tax Credit award represents MCD’s sixth allocation, providing a total of $335 million since their first award in 2014. MCD is a Community Development Entity (CDE) established by Mascoma Bank to deploy tax credits into projects that benefit severely distressed, low-income persons and/or communities, and which promote job retention and creation, downtown revitalization, business development and expansion, and additional catalytic development.
“It’s an honor to receive this award from the CDFI Fund, which will support our community development efforts in rural areas that have great need for access to flexible capital,” said Ryan Bishop, Managing Director, Mascoma Community Development. “By deploying this funding, we can help support projects that catalyze beneficial change and economic growth in the communities we serve.”
The New Markets Tax Credit was enacted in 2000 to stimulate private investment and economic growth in low-income rural communities and minor-urban neighborhoods that lack access to the flexible capital needed to support and grow businesses, create jobs, and sustain healthy local economies. The NMTC is a 39 percent federal tax credit, taken over seven years, on investments made in economically distressed communities.
“We were so pleased to hear about the award, which will allow MCD to continue making meaningful and sustainable change in communities where development makes a significant impact. We truly appreciate the continued support of the NMTC program from our Congressional delegations in Washington, D.C.,” shared Clay Adams, President and CEO of Mascoma Bank.
When MCD receives a fee through its NMTC activities, a portion is also reinvested as a grant to support a CDFI partner that is local to the underlying project. Since 2021, MCD has funded $723,750 in CDFI partner grants to address community needs such as childcare, community health, affordable housing, and small business support.