New Markets Tax Credit Receives Permanent Extension

3 logos - CDFI Fund, HRIF, and STL Partnership

HRIF to continue helping St. Louis area businesses with passing of extension

On July 3, the U.S. Government passed a permanent extension for the New Markets Tax Credit (NMTC). This will allow Heartland Regional Investment Fund, LLC (HRIF), a subsidiary of St. Louis Economic Development Partnership (STL Partnership), to continue helping businesses throughout the St. Louis metro area.

HRIF provides financing to projects in distressed communities located in the areas supported by its members, consisting of the City of St. Charles, Southwest Illinois Development Authority and STL Partnership. Eligible areas HRIF serves are St. Louis and St. Charles Counties in Missouri, plus Bond, Clinton, Madison and St. Clair Counties in Illinois.

The U.S. Department of the Treasury Community Development Financial Institutions Fund gives Community Development Entities (CDEs), such as HRIF, the authority to issue tax credits in exchange for equity investments that are used to provide loans to businesses in low-income communities.

According to the New Markets Tax Credit Coalition, which STL Partnership is a part of, making NMTC permanent will bring $100 billion in capital to underserved regions around the country and support 4,000 businesses over the next 10 years.