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Arkansas Capital Corp. Awarded $35M in New Markets Tax Credits

2 min read

Arkansas Capital Corp. of Little Rock announced Wednesday that it has again received $35 million in federal New Markets Tax Credits allocations.

The firm said these credits will be deployed this fall for use in various projects. Its NMTC portfolio is managed by its subsidiary, Heartland Renaissance Fund.

The credits come from the U.S. Department of Treasury’s Community Development Financial Institutions. This award brings the firm’s total credit allocations to $335 million since the program began in 2003.

The NMTC program is designed to incentivize investors and private capital sources the financing of projects in low-income and rural communities, projects that can have a positive economic impact, create jobs and benefit communities in other ways.

In addition, allocations of NMTCs are made only to organizations that have earned designation as a Community Development Entity by the CDFI Fund.

“Through the $335 million in NMTC allocations we’ve received, Arkansas Capital and our local and state partners have helped projects produce 2,318 direct jobs and 1,384 construction jobs in the most distressed census tracts in our state,” said Sam Walls, president of Arkansas Capital, in a news release. “These jobs are part of 36 projects deployed to date. With our partners, these tax credits have helped Arkansas Capital to finance rural manufacturing operations, nonprofit and education facilities, and rehabilitated historic buildings in abandoned or distressed Main Street corridors.”

Walls added that the NMTC program is a “perfect opportunity” for investors and that his firm is continually looking for “impactful projects, especially in low-income areas.”

He also said partnerships with local and state officials, as well as private and public organizations, are key to successful deployment of the credits.

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