Detroit, Michigan, January 7, 2026
Invest Detroit has received a historic $55 million allocation through the New Markets Tax Credit program to support economic growth in Detroit. This funding is part of a larger national allocation and aims to attract private investment into disadvantaged communities. With this allocation, Invest Detroit strengthens its commitment to creating jobs and supporting local development initiatives.
Detroit, Michigan – Invest Detroit Receives $55 Million in New Markets Tax Credits
Invest Detroit has been awarded a $55 million allocation through the federal New Markets Tax Credit (NMTC) program, part of a record-setting $10 billion national allocation announced on December 23, 2025, by the U.S. Department of the Treasury. This marks the largest NMTC award in Invest Detroit’s history and highlights Michigan’s growing role in deploying federal capital to drive equitable economic growth.
Details of the Allocation
The allocation was made by the Treasury Department’s Community Development Financial Institutions Fund, which administers the NMTC program to attract private-sector investment into economically distressed communities. Investors receive federal tax credits in exchange for financing qualified real estate and operating business projects that create jobs, modernize facilities, and expand access to essential services.
Invest Detroit’s Impact
This is Invest Detroit’s seventh NMTC allocation since 2009, bringing its cumulative total to more than $263 million. To date, the organization has deployed NMTC financing to 25 projects across Detroit, helping create more than 3,600 jobs while supporting minority developers, entrepreneurs, historic building reuse, and accessible manufacturing facilities.
Recent Projects Supported by NMTC
- Anchor Detroit (Life Remodeled): A $6 million NMTC investment transforming a former school campus on Detroit’s east side into a community innovation hub offering youth programming, workforce development, health and wellness services, and arts and culture resources. The project is expected to serve more than 20,000 residents annually and anchor revitalization along the Whittier Corridor.
- METD Detroit / Laepple Automotive: A $7.5 million NMTC allocation supporting the reactivation of a former Stellantis tool-and-die facility idle since 2019. The project will establish Laepple’s U.S. headquarters, create 173 jobs, and provide space for additional advanced manufacturing tenants, reinforcing Detroit’s industrial base.
Broader Michigan Ecosystem of NMTC Lenders
Invest Detroit was one of several Michigan-active community development financial institutions (CDFIs) to receive NMTC allocations in this historic round, highlighting the depth of the state’s development finance ecosystem. Other Michigan-based CDFIs include Cinnaire, IFF, LISC (Local Initiatives Support Corporation), Capital Impact Partners, and CHS, each contributing to various community development projects across the state.
Background on the NMTC Program
Established in 2003, the NMTC program was created to address a persistent market failure: the lack of affordable financing in low-income and disinvested communities. By lowering risk for investors, NMTCs help projects move forward that would otherwise stall due to high costs, thin margins, or limited access to traditional bank financing. Since inception, the CDFI Fund has issued 1,809 NMTC awards totaling $81 billion nationwide, generating more than $8 in private investment for every $1 of federal support. In Michigan alone, the program has backed 156 projects with more than $1.8 billion in NMTC investment, supporting manufacturing, healthcare, education, housing-adjacent commercial development, and small businesses.
In a major policy shift welcomed by developers and lenders, Congress made the NMTC program permanent in July 2025 through the One Big Beautiful Bill Act, ending years of short-term extensions and giving communities long-term certainty to plan complex projects.
Frequently Asked Questions (FAQ)
What is the New Markets Tax Credit (NMTC) program?
The NMTC program is a federal initiative designed to attract private-sector investment into economically distressed communities by offering tax credits to investors who finance qualified real estate and operating business projects that create jobs, modernize facilities, and expand access to essential services.
How does the NMTC program benefit communities?
The NMTC program helps address the lack of affordable financing in low-income and disinvested communities by lowering risk for investors, enabling projects that would otherwise stall due to high costs or limited access to traditional bank financing to move forward. This leads to job creation, facility modernization, and improved access to essential services in these communities.
What is the significance of Invest Detroit’s $55 million NMTC allocation?
Invest Detroit’s $55 million allocation is the largest NMTC award in the organization’s history and underscores Michigan’s growing role in deploying federal capital to drive equitable economic growth. This allocation will support additional projects aimed at revitalizing Detroit neighborhoods and creating jobs.
Can you provide examples of recent projects supported by NMTC in Detroit?
Recent projects include the redevelopment of a former school campus into a community innovation hub offering various services and the reactivation of a former automotive facility to establish a U.S. headquarters and create jobs, reinforcing Detroit’s industrial base.
What is the One Big Beautiful Bill Act?
The One Big Beautiful Bill Act is legislation passed in July 2025 that made the NMTC program permanent, providing communities with long-term certainty to plan and invest in complex projects, thereby supporting sustained economic development in distressed areas.
Key Features of the New Markets Tax Credit Program
| Feature | Description |
|---|---|
| Purpose | Attract private-sector investment into economically distressed communities to support job creation, facility modernization, and improved access to essential services. |
| Tax Credits | Investors receive federal tax credits in exchange for financing qualified projects in low-income areas. |
| Program Impact | Since inception, the program has generated more than $8 in private investment for every $1 of federal support, with over $81 billion in NMTC awards nationwide. |
| Michigan’s Role | Michigan has received over $1.8 billion in NMTC investment, supporting 156 projects across the state, including manufacturing, healthcare, education, housing-adjacent commercial development, and small businesses. |
| Program Permanency | The One Big Beautiful Bill Act, passed in July 2025, made the NMTC program permanent, providing communities with long-term certainty to plan and invest in complex projects. |
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