How Manufacturers Can Open the Door for Expansion with NMTCs

Introduction: A Journey of Growth Begins

As we stand at the intersection of innovation and expansion, manufacturers are presented with both challenges and opportunities. The path to growth often involves navigating complex terrains, but New Markets Tax Credits (NMTC) open new doors of possibility for expansion or relocation endeavors.

One of the key ways NMTCs lend their transformative power is by providing crucial financial support. This, in turn, allows manufacturers to invest in state-of-the-art facilities, cutting-edge technology, and sustainable practices. As we embrace a future driven by innovation, NMTCs stand as a testament to the commitment of manufacturers to not only survive but to thrive in an ever-evolving landscape.

Consider a transformative instance where $40M in NMTC financing facilitated Wholeston Farm’s pork processing plant’s ambitious expansion in Fremont, NE. This strategic financial injection led to a substantial facility upgrade and the procurement of advanced equipment, catalyzing the creation of 800 new jobs within the local community. Such expansion underscores the NMTC’s vital role in not only bridging financial gaps exacerbated by unforeseen challenges like the COVID-19 pandemic but also in fostering substantial community and economic development.  Allocation was provided by Dudley Ventures, Greenline Ventures and Stonehenge Community Development.  The NMTC Investor was US Bank.

This example exemplifies the profound impact NMTCs can have, empowering organizations to significantly enhance their operational capacity and community contribution, even in the face of daunting obstacles.

Fueling Financial Acceleration

In the dynamic manufacturing landscape, NMTCs emerge as potent catalysts, breaking down financial barriers. These tax credits empower manufacturers to invest ambitiously in cutting-edge technologies, state-of-the-art facilities, and sustainable practices. Imagine a future where financial constraints no longer dictate growth, allowing manufacturers to invest boldly in their success and the prosperity of the communities they impact.

For instance, a transformative project in Union City, TN, saw the renovation of an 81,000 sq. ft. vacant industrial facility into a cutting-edge boat manufacturing plant for Excel Boats. This NMTC-facilitated venture not only expanded the production line but also created 190 direct jobs, with an emphasis on hiring from the local low-income community. Without NMTCs, the financial challenges of such an ambitious expansion would have rendered the project nonviable, showcasing NMTCs’ critical role in fueling financial acceleration and community development.  NMTC allocation was provided by Dudley Ventures and the NMTC Investor was Valley National Bank.

Empowering Growth, Empowering Communities

Beyond balance sheets, NMTCs empower manufacturers to contribute to the social fabric of their surroundings. Explore how these tax credits enable growth paths that uplift underserved areas, creating a positive impact on local communities. It’s about responsible growth that transforms communities alongside business success.

Building Partnerships for Collective Triumph

The NMTC narrative extends beyond financial transactions; it’s a story of collaboration and shared goals. Leveraging NMTC requires collaboration and partnership across sectors. Manufacturers, investors, and local communities unite with a shared vision for a brighter future. NMTCs facilitate a collective triumph where individual successes contribute to a thriving ecosystem.

Climate by Design International (CDI), who received $27MM in NMTC Allocations,  showcases the power of New Markets Tax Credit (NMTC) in empowering communities and fostering partnerships across sectors for mutual growth. This initiative, highlighted by Senator Klobuchar’s visit, exemplifies how NMTCs enable significant collaborations, such as the one between CDI and a local high school, driving both economic and community development. Through strategic financial support and commitment to educational partnerships, CDI’s expansion not only advances its business goals but also contributes to the local ecosystem’s prosperity, embodying the essence of NMTCs in achieving collective triumph.  Allocation was provided by Mascoma Community Development,  Midwest Minnesota Community Development Corporation, and Sunrise Bank.  The NMTC Investor was US Bank.