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City Of Las Vegas Receives $45 Million In New Markets Tax Credits
Funds To Be Used To Provide Loans To Businesses That Service Low-Income Population
The city of Las Vegas has been notified that it will receive $45 million in federally-funded New Markets Tax Credits to invest in low-income and underserved communities in southern Nevada. The U.S. Treasury Department’s New Markets Tax Credits program encourages investment in traditionally underserved communities by providing investors with a tax credit when they make investments in qualified, active low-income community businesses in eligible census tracts.
The city of Las Vegas formed its own community development entity, the Las Vegas Community Investment Corporation (LVCIC), to facilitate investment in owner-occupied commercial real estate projects, particularly those involving manufacturing, mixed-use, education and health care. A typical project would total between $6 million and $8 million. LVCIC will continue to use New Markets Tax Credits to provide flexible financing to borrowers that are focused on delivering exceptional service to the city of Las Vegas’ impoverished neighborhoods. The service area includes all of the city of Las Vegas’ highly distressed neighborhoods, but the LVCIC is specifically targeting the communities most severely impacted by Nevada and Las Vegas’ dramatic economic downturn. This includes the downtown vicinity as well as other eligible census tracts extending north from downtown.
“These tax credits are critically important as we continue to invest in our underserved areas,” Mayor Carolyn G. Goodman said. “The new businesses that will be helped by these funds will create quality jobs and investment opportunities in our community.”
Prior to this federal allotment, the LVCIC received $55 million in 2016. A portion of that money went toward the construction of a new library in East Las Vegas.
“These funds will help further our Ward 5 Works initiative, which looks to create new jobs and opportunities for residents in Ward 5,” said Councilman Cedric Crear. “These funds will incentivize developers to invest in downtown, not only creating more jobs by offering quality goods and services.”
As of the end of FY 2018, the NMTC program nationally has:
- Generated $8 of private investment for every $1 of federal funding
- Supported the construction of 51 million square feet of manufacturing space, 89 million square feet of office, and 65 million square feet of retail space.
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