SunTrust Banks, Inc. has recently been awarded an $80 million tax credit allocation authority to help finance community development projects.
The U.S. Treasury Department’s Community Development Financial Institutions Fund selected SunTrust Community Development Enterprises as one of 120 tax credit authority recipients in the 2015-16 cycle of the New Markets Tax Credit (NMTC) Program. The program was designed to draw investment into urban and rural low-income areas, creating new jobs and boosting economic growth.
“SunTrust has enjoyed many successes through our partnerships in the New Markets Tax Credit industry,” Kathy Farrell, SunTrust Commercial Real Estate executive, said. “This latest allocation allows us to further invest in projects that fill needs in low-income communities across the country. Our purpose as a company is lighting the way to financial well-being for our clients, communities, and teammates, that’s why we launched onUp, a movement to inspire Americans to take action to achieve financial confidence. This program is a further shining example of how we deliver on our purpose.”
NMTC, founded 16 years ago, awards federal income tax credits for individuals and companies making eligible investments in Community Development Entities (CDEs). Investors receive 39 percent of their investment costs in credits, claimed over a period of seven years, while the CDEs then must use the investments to fund development in low-income communities.