St. Paul, Minn.-based Sunrise Banks received a $45 million New Markets Tax Credit allocation from the U.S. Treasury on Oct. 28.
According to a press release, the Community Development Entity is using the allocation to support economic development in Twin Cities low-income communities. The allocation is the bank’s seventh and was made through the calendar year 2021 round of the program.
“New Markets Tax Credits are an effective financial tool to empower access to credit in low-income communities,” said Sunrise Banks CEO David Reiling. “We look forward to deploying this allocation in a way that supports local businesses and community development.”
Sunrise was one of 107 Community Development Entities to receive New Markets Tax Credits last year. Established by Congress in 2000, the New Markets Tax Credit allows individual or corporate taxpayers to receive tax credits for making equity investments in CDE’s, which then use the funds to finance economic development in underserved communities.