The Montana Community Development Corp. received a $65 million New Market Tax Credits allocation from the U.S. Treasury Department on June 15. Montana CDC can work with investors and companies looking to grow to use those tax credits to fund construction or capital improvements in low-income areas.
The $65 million ties the largest allocation Montana CDC has received from Treasury, with the group receiving eight New Market Tax Credit allotments in the past nine years. Montana CDC has used tax credits on four Idaho projects since 2012: Golden Valley Natural’s new facility in Shelley, Western States Equipment’s new Pocatello facility, and medical clinics in Coeur d’Alene and Rexburg.
Montana CDC, which has two offices in the Treasure State, recently partnered with Capital Matrix to expand its presence in Boise. The nonprofit claims that the four Idaho projects have created more than 700 construction jobs and will lead to 500 permanent jobs.
New Market Tax Credits, created in 2000, give individual and corporate investors a federal income tax credit in exchange for making investments in specialized financial institutions, like Montana CDC, that then provide below-market financing to development projects in low-income areas.