PNC Tax Credit Solutions was awarded $55 million in tax credit allocation from the U.S. Department of Treasury as part of the $5 billion 2021 New Markets Tax Credit (NMTC) program.
The tax credits will help spur investment and economic growth in underserved urban and rural communities throughout the country. PNC Tax Credit Services is a unit of PNC Financial based in Pittsburgh.
“This new allocation will deepen PNC’s strategy of investing critical capital and resources in underserved communities across our footprint,” David Gibson, senior vice president and manager of Specialty Tax Credit Investments for PNC Tax Credit Solutions, said. “Our NMTC allocation will allow us to provide funding for a broad range of projects and businesses, which will seek to address the most pressing needs in our communities, such as economic development and job growth.”
PNC was selected as one of 107 Community Development Entities (CDEs) to receive a share of the NMTC allocation. This is PNC’s fourth consecutive allocation and 10th overall within the NMTC program. Through the years, PNC has supported more than 360 community development initiatives in 32 states and invested more than $1.5 billion.
PNC’s Tax Credit Solutions business is in charge of allocating the NMTCs to projects in low-income communities that traditionally lack access to long-term capital investment. The program helps to offset the perceived risk of investing in distressed communities while allowing CDEs with intimate local knowledge to determine how NMTCs can be best deployed. This allows investments to go directly to the most pressing needs facing communities.
In the past, PNC’s NMTC-funded projects have gone to healthcare and rehabilitation providers, improve food security, fund at-risk youth services, support education, and grow manufacturing jobs.
Specifically, some of those projects include the construction of a 32,320-square-foot facility for the Goodwill of North Central Texas; a new 60,000-square-foot facility to support manufacturing and vocational education, local business development, and job creation for Manufacturing Advocacy & Growth Network (MAGNET) in Cleveland, Ohio; the construction of a new 54,000-square-foot warehouse and food distribution center for the Food Bank of the Rockies in Grand Junction, Colo.; and the new Premier Community HealthCare facility in Pasco County, Fla., that will double the number of primary care patients served.
In addition to helping underserved communities, these projects stimulate economic development and additional investments to benefit communities that have been historically overlooked by developers and investors.