In December 2015, the US government announced an aggressive $1.1 trillion spending package aimed at providing relief to low income families, mass commuters, students and businesses through tax breaks. The package also includes $250 billion tax breaks targeting individuals. Following the relief, employers may now subsidize employees commuting cost, low income working families are guaranteed higher refunds and college students can expect generous tuition tax credits. Parents with kids can also expect bigger refunds while residents of states without income tax can expect permanent deductions.
The Boston Community Capital (BCC) is a community focused non-profit financial institution that is at the forefront of empowering communities. The institution has so far invested more than $1 billion in projects that aim to provide new opportunities to low income earners, uplift the economic standards of local people, offer affordable housing and provide better jobs. Over the years, the Boston Community Capital New Market Tax Credit (NMTC) program has done a lot to achieve the aforementioned objectives.
Since its inception, the US Department of Treasury has awarded 7 BCC NMTC programs a sum totaling $470million. Besides the investments, BCC uses its earnings to leverage existing and new ventures and strengthen its existing lending programs such as the Energy Advantage Program, Loan Fund and SUN initiative. The debt and equity capital provided by BCC’s NMTC are both flexible and friendly, like the Maine NMTC. The attractions include; low interest rates, low debt service coverage ratios, low origination fees, flexible borrower credit standards and longer amortization durations among other benefits.
BCC NMTC operates throughout the US as it continues to seek potential community development projects and business opportunities, especially those in distressed urban and rural population centers. Statistics indicate that up to 90% of all investments undertaken by NMTC have gone go to counties outside metropolitan areas. The Impact of the programs supported by the initiative has led to several benefits countrywide, including the preservation of affordable housing, business growth, extended education and conservation of natural resources.
Outside Massachusetts, the other states that have benefited from the program include; New York, Virginia, California, Maine, Texas and Louisiana. The investments made by BCC have so far leveraged an additional $1.3 billion in capital. To attain its objectives to transform communities, NMTC has gone into great lengths to seek viable projects that are big enough to strengthen and support the local economy. Qualifying investors and co-lenders must also have relevant experience in the targeted industries and investment destinations.