Central Bank of Kansas City, through an affiliate, was awarded $80 million in federal tax credits that it can offer to attract investment to economically distressed communities.
The New Markets Tax Credits that the affiliate controls came from the Community Development Financial Institutions Fund at the U.S. Treasury. Corporate or individual investors can receive the 39 percent federal tax credit, which can be taken over seven years, on projects that meet program standards.
This is the bank’s seventh award under the program, which began in 2000. In total, it has allocated $351 million in credits on community development projects, supporting business growth and jobs. An announcement said credits the bank allocated have aided financing of 43 projects totaling $730 million.
“We are proud that the CDFI Fund continues to value the work we’re committed to achieving for low-income communities in Kansas, Missouri and Illinois,” Bill Dana, president of the bank and the affiliate, said in an announcement.
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The New Markets Tax Credit program targets private investment to spur economic growth in low-income urban neighborhoods and rural communities.