By Paul Thompson
Northeast News
December 28, 2016
KANSAS CITY, Missouri – On the heels of their annual business profile story in the October 5th edition of the Northeast News, Central Bank of Kansas City recently announced another successful application and allocation of $80 million in New Market Tax Credits (NMTC) from the U.S. Department of Treasury’s Community Development Financial Institutions (CDFI) Fund.
According to the bank’s Marketing Director Sarah Cousineau, November’s award marks the seventh successful NMTC award for Central Bank of Kansas City, with a total of $351 million in allocation since the first award in 2007. The NMTC program allows CBKC to direct capital to underserved communities through financing high-impact, mission-focused projects.
Central Bank President and CEO Bill Dana said that while the bank has three states to cover with the tax credits, he always keeps an eye out for interesting projects to support in the Northeast.
“We already have several good applications from Northeast entities,” said Dana. “Hopefully we’ll be able to get something done that will be positive.”
Dana added that the New Market Tax Credits come in the form of a 39% tax credit on projects, which are divided over seven years. Over the seven-year period, for instance, a $10 million project would see a $3.9 million tax credit. Although Central Bank can disperse the $80 in tax credits however it wishes, Dana said that the value deliverance is best for projects between $5 million and $10 million.
Keep an eye out in further editions of the Northeast News for an update on how those New Market Tax Credits are distributed.