Fifth Third receives $50M federal New Markets Tax Credits allocation

The Fifth Third New Markets Development Company has received a $50M allocation in New Markets Tax Credits from the U.S. Department of the Treasury’s Community Development Financial Institutions Fund. An affiliate of the Fifth Third Community Development Company, the Fifth Third New Markets Development Company is one of 104 community development entities across the U.S. to receive an award in the $5B Treasury fund allocation announced on Sept. 19. “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 Kala Gibson, chief corporate responsibility officer for Fifth Third. “Through initiatives like our place-based neighborhood investment program, we have delivered capital to low-income communities to help build existing community assets and address barriers to economic mobility. This allocation will enable our Community Development Banking team and the Fifth Third CDC to bring exponentially more impact to the communities we serve.” 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.