WASHINGTON, DC—The US Department of the Treasury yesterday announced it would distribute $3.5 billion of New Market Tax Credits to 85 Community Development Entities throughout the US, in its tenth round of allocations. To date, the Community Development Financial Institutions Fund has made 749 allocation awards totaling $36.5 billion in tax credit authority, including $3 billion in Recovery Act awards and $1 billion that was specifically set aside for recovery and redevelopment in the wake of Hurricane Katrina.

As GlobeSt.com reported this morning, Treasury assistant secretary for financial institutions Cyrus Amir-Mokri, US Senator Charles E. Schumer (D-NY) and CDFI Fund director Donna J. Gambrell made the announcement. The Fund distributed the NMTCs to the CDEs, which are spread through 28 states and the District of Columbia. The CDEs will provide services in a wide range of local and state areas as well as on the national level.

According to Gambrell, more than 70% of NMTC investments have been made in communities that meet the highest distress criteria, above even the program's requirements. “That result effectively demonstrates how essential the program is to spurring economic development in underserved areas,” she commented.