Boston Community Capital Receives New Markets Tax Credit Award of $60 Million for Economic Revitalization in Low-Income Communities

Boston, MA (June 2006) – The CDFI Fund of the U.S. Department of the Treasury announced that Boston Community Capital has received an award of $60 million in New Markets Tax Credits. This is the second award of this kind for BCC, which received an initial award of $70 million in New Markets Tax Credits in 2004. The formal announcement was made by Treasury Secretary John Snow.

“The economic isolation of low-income communities and residents is one of the primary barriers to overcoming poverty, and to creating wealth and opportunities for our poorest citizens,” said Elyse D. Cherry, CEO of Boston Community Capital.  “The importance of the NMTC program is that it can generate both specific, project-related impacts and broad systemic connections between low-income communities and mainstream sources of capital.”

Senator John Kerry congratulated Boston Community Capital on its award, saying, “These tax credits are important tools for economic development organizations to attract investors to areas that have been left behind. By dedicating themselves to revitalizing low-income neighborhoods, Boston Community Capital will help give these communities a much-needed boost. With this investment come new opportunities for low-income areas, and, in turn, economic growth, new jobs and a stronger economy.”

The New Markets Tax Credit (NMTC) program allows investors to earn tax credits for investing in community development organizations, like Boston Community Capital, which then use these investments to finance economic revitalization activities in low-income communities. Boston Community Capital already committed more than $60 million of its initial award to projects nationwide that develop inner-city commercial and industrial space, create rural jobs and small business opportunities, and preserve thousands of acres of endangered forest through sustainable forestry businesses and eco-tourism. BCC has leveraged the proceeds from the New Markets Tax Credit program as well as other organizations’ New Markets Tax Credits awards to provide financing to local developers and nonprofits, financing charter schools like Boston’s Media and Technology Charter High (MATCH) School, child care centers, community facilities and affordable homeownership opportunities.

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