The city of Las Vegas was notified today that it will receive $55 million in federally-funded New Markets Tax Credits to invest in low-income and underserved communities in southern Nevada.
The U.S. Treasury Department’s New Markets Tax Credits program encourages investment in traditionally underserved communities by providing developers with a tax credit when they make investments in low-income areas.
The city of Las Vegas formed its own community development entity, the Las Vegas Community Investment Corporation (LVCIC), to facilitate investment in owner-occupied commercial real estate projects, particularly those involving manufacturing, mixed-use, education and health care.
A typical project would total between $5 million and $15 million.
Prior to this federal allotment, the LVCIC received $28 million in New Markets Tax Credits in 2014. The major portion of this federal funding was used for two projects, the restoration of the Historic Westside School and a permanent location for the Nevada Supreme and Appellate courts in downtown Las Vegas.
The success of these two projects was part of the criteria that led to the increase in funds for 2016.
Rehabilitation on the Historic Westside School was completed this summer. Its interior now includes modern office and retail space for businesses and nonprofits, while the historic exterior appearance was carefully preserved and restored.
The school is expected to be a catalyst for further building and revitalization efforts within the community.
Currently under construction on the southeast corner of Clark Avenue and Fourth Street is a new home for the Nevada Supreme and Appellate courts. Developers anticipate that this building will open in early 2017.
The New Markets Tax Credits program was established by Congress in December. Since its inception, the program has supported the construction of 32 million square feet of manufacturing space, 75 million square feet of office and 57.5 million square feet of retail space.
As these communities develop, they become more attractive to investors, creating a ripple effect that spurs more investment.