Fifth Third Receives $50M Federal New Markets Tax Credits Allocation
An affiliate of the
“One of the primary missions of the Fifth Third CDC is to support low-income communities across our footprint that have experienced a legacy of disinvestment, wealth extraction and income disparities,” said
The New Markets Tax Credit Program helps economically distressed communities attract private investment capital. The federal tax credit helps to fill project financing gaps by enabling investors to make larger investments than would otherwise be possible. Communities benefit from the jobs associated with investments in manufacturing, retail and technology, as well as from greater access to housing and public facilities such as health, education and childcare.
The Fifth Third CDC invests in real estate developments across the Bank’s 11-state footprint to help communities thrive. These investments can include affordable housing, small business spaces or community facilities. Often, the projects enable access to essential services for residents, including financial education, social programming and greenspaces for recreation.
"This allocation demonstrates that Fifth Third’s innovative, place-based approach to working in neighborhoods and working at a neighborhood scale is being recognized nationally. And for neighborhoods across our footprint in which we are engaged, Fifth Third now has yet another tool we can use to drive capital into communities in partnership with them,” said
“Of the various federal tax credits, New Markets Tax Credits are the most impactful for driving neighborhood transformation,” Thomas said. “As we have become increasingly active in place-based development and lending, we realized that not having these tax credits as part of our toolkit was hampering our ability to show up for our communities with all of the tools at our disposal.”
The Fifth Third CDC is an experienced NMTC participant as an equity investor and leverage lender in this locally managed federal program. Fifth Third works with a network of Community Development Entities – intermediaries serving low-income communities – to provide funding for qualified projects. Recent Fifth Third CDC investments include CityLink Center in
Community economic development is a cornerstone of Fifth Third’s Neighborhood Program, which creates and implements innovative place-based strategies to effect positive change in nine historically disinvested neighborhoods across the Bank’s footprint.
Launched in 2021, Fifth Third’s Neighborhood Program is pioneering a new way to do community development by partnering with local organizations to build ecosystems that drive real change through both financial and social investments. This collective ecosystem approach is focused on identifying solutions to key challenges in partnership with the community, with the goal of creating lasting, transformative change.
In
About Fifth Third
Fifth Third is a bank that’s as long on innovation as it is on history. Since 1858, we’ve been helping individuals, families, businesses and communities grow through smart financial services that improve lives. Our list of firsts is extensive, and it’s one that continues to expand as we explore the intersection of tech-driven innovation, dedicated people and focused community impact. Fifth Third is one of the few
About the New Markets Tax Credit Program
The New Markets Tax Credit Program, established by
To learn more about the New Markets Tax Credit Program, please visit www.cdfifund.gov/nmtc.
Category: Other
View source version on businesswire.com: https://www.businesswire.com/news/home/20240926223035/en/
amanda.nageleisen@53.com
matthew.curoe@53.com | 513-534-2345
Source: Fifth Third