Capital Impact Partners Awarded $85 Million in New Markets Tax Credits to Attract Private Capital and Advance Social Impact Efforts

December 24, 2025 (Arlington, VA) – Capital Impact Partners has been awarded a $85 million New Markets Tax Credit (NMTC) allocation from the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund). These tax credits incentivize private sector investors to partner in community financing efforts.

“New Market Tax Credits are an important tool with a longstanding history of expanding critical services in America’s communities, providing more people with access to health care, education and healthy foods,” said Mindy Christensen, senior vice president of Community Development Lending for Capital Impact Partners, which is part of the Momentus Capital branded family of organizations. “We are grateful for this award, which we plan to utilize toward projects in California; Georgia; Michigan; New York; Texas; and Washington, D.C.”

Capital Impact Partners is now a 13-time NMTC recipient — with awards totaling $877 million. To date, the organization has used NMTC allocations to support the financing of 100 transactions nationally.

Capital Impact Partners’ NMTC investment strategy prioritizes healthcare, education, and multi-service community organizations that serve communities living with low incomes in California; Georgia;Michigan;New York; Texas; and Washington, D.C.:   

• Healthcare: Projects that address the lack of affordable health care 
• Education: Projects that address the lack of quality, affordable education
• Multi-service community organizations: Projects that provide essential services such as addressing high levels of food insecurity, expanding afterschool options, and addressing an inability to meet basic needs

The New Markets Tax Credit program was made permanent on July 4, 2025. This action secures a $5 billion annual allocation (adjusted for inflation) for community development investments in low-income areas, ending 25 years of short-term extensions.

Creating High Impact Projects through NMTCs

Capital Impact Partners has deployed NMTC allocations into a variety of impactful projects. Examples of those projects include:

Coastal Bend Food Bank, Texas

Coastal Bend Food Bank (CBFB) is a nonprofit organization in Texas that solicits and distributes food which might otherwise go to waste or be discarded by manufacturers, wholesalers, and retailers. Since 1982, CBFB has been fighting hunger in the Coastal Bend by providing food and personal care products to various charity and service agencies. It is serving 13.7 million pounds of food annually to more than 50,000 individuals in 11 counties throughout South Texas. 

The construction of a new 108,200-square-foot warehouse and distribution center in Corpus Christi will enable CBFB to distribute more than 19 million pounds of food by 2028, a 43% increase over 2020.

The building opened in 2024 and aims to ease a community crisis where explosive growth for the food bank has led to urgent facility needs. As a smaller metro area, philanthropic dollars are limited, so NMTC is a critical means of supporting this expansion.

Capital Impact Partners joined with Raza Development Fund, Texas Mezzanine Fund, and US Bank on this $29.25 million NMTC project.

San Ysidro Health Center, California

San Ysidro Health (SYH), Inc. is the second largest health center network in the San Diego area and provides a range of services including medical, dental, pediatrics, women’s health, urgent care, and behavioral health across its more than 40 locations. SYH primarily serves patients living with low incomes (95% of 2020 patients at or below 200% FPL), and uninsured patients (20% of 2020 patients). In 2020, SYH had 96,000 unique patients and almost half a million visits.

The ground-up construction of a 44,000-square-foot health clinic and PACE (Program of All-Inclusive Care for the Elderly) center in National City, California, is part of a larger master plan that also includes affordable housing. The new National City clinic will add up to 78,338 visits per year; additionally,  the new PACE center serves up to 600 older adults. The center is expecting to open in early 2026. 

Capital Impact Partners joined with National Cooperative Bank, Center Capital Fund (Capital Fund, a part of Capital Link), U.S. Bank, Corporation for Supportive Housing, and Border Communities Capital on this $58 million NMTC project. 

How do New Markets Tax Credits work?

Managed by the CDFI Fund, NMTC allocations make their way into the community through the following process:

• A community development entity (CDE) submits an application to the CDFI Fund requesting the authority to allocate a specific dollar amount of tax credits.
• If its application is approved, the CDE is awarded the authority to allocate tax credits to an investor.
• The investor chosen by the CDE receives a tax credit totaling 39% of the cost of the investment. The investor can claim that tax credit over a period of seven years.
• In exchange for those tax credits, the investor makes a qualified equity investment (QEI) in the CDE.
• The CDE must use the QEIs it receives from the investor to finance businesses or real estate projects in communities living with low incomes, where the poverty rate is 20% or higher or the median income is 80% or lower than the Area Median Income. The CDE also has the option of investing in other CDEs making loans in areas with residents earning low incomes.