- September 29, 2023
colorado growth and revitalization fund awarded $65 million in new markets tax credits
(DENVER) – The Colorado Growth and Revitalization Fund (CGR Fund) has received an award of $65 million in federal New Markets Tax Credits (NMTCs), the highest award amount allocated to qualified applicants this year, according to the latest NMTC Program Award Book. This marks the fifth consecutive year that the CGR Fund has received NMTCs, and it is the largest one-year allocation in CGR’s history.
Since 2005, Colorado Housing and Finance Authority (CHFA) has administered New Markets Tax Credits through the CGR Fund, a Community Development Entity (CDE) that operates in partnership with the City and County of Denver and for which CHFA is the managing member. Since its inception, CGR Fund has deployed more than $228 million in NMTCs supporting more than 3,000 jobs throughout Colorado.
Awarded annually by the federal government, NMTCs attract private capital to support and revitalize underserved and low-income communities by helping businesses and nonprofit organizations in those areas with accessible and flexible financing. “New Markets Tax Credits promote investment across Colorado regions and neighborhoods where there is high opportunity for revitalization and growth, but where attracting private capital is otherwise very challenging,” explained Steve Boice, Business Finance Manager at CHFA. “We’re honored to be given the opportunity to continue to play a role in stewarding this important resource that has impacted thousands of Coloradans and their communities over the years.”
The New Markets Tax Credits program was established by the Community Renewal Tax Relief Act of 2000, which was signed into federal law in 2001. Since then, the program has been extended by congress several times through bipartisan legislation. Under the program, credits are allocated by the United States Treasury CDFI Fund through a competitive process to qualified Community Development Entities (CDEs) who have a demonstrated record of investing in underserved areas.
The credits attract private investment, the proceeds of which are used by CDEs to finance local revitalization efforts, the majority of which must fall in census tracts identified as economically distressed. New Markets Tax Credits support a wide range of investments including grocery stores, healthcare facilities, childcare centers, and restoration of vacant commercial and manufacturing properties. According to the CDFI Fund, every $1 invested by the federal government in NMTCs generates an estimated $8 in private investment.
Recent developments in Colorado supported by the CGR Fund through NMTCs include the Pueblo Community Health Center and the newly-completed Food Bank of the Rockies Western Slope Etkin Family Distribution Center.
More information about New Markets Tax Credits administered through the CGR Fund is available on the CHFA website.