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Tax Credit Financing

Tax Credit Financing

Private investments that provide a public benefit.

At U.S. Bank, we take great pride in strengthening communities and empowering those who live and work in them. By providing products and services that meet the diverse needs of our communities, including tax credit financing for community development initiatives, we help create a social and economic foundation for achieving affordable housing, productive small businesses and culturally vibrant and environmentally sustainable communities.


Helping make a positive difference in communities nationwide.

Like our parent company U.S. Bank, U.S. Bancorp Community Development Corporation (USBCDC) is an engaged and responsible corporate citizen. We recognize that corporate success and social welfare are interdependent, and we strive to ensure that our work contributes to positive outcomes for the communities, businesses and stakeholders affected by it. One of the ways we do this is by providing tax credit financing in support of projects that foster higher standards of living and quality of life in communities coast to coast.

Tax credit programs were devised by Congress and some state agencies as a way to encourage private investment in projects and businesses that provide a public benefit to underserved individuals, families and communities; enable historic preservation; and provide clean energy. They do this by raising private capital to fill financing gaps when other public and private funding sources are insufficient or unavailable.


Primary Tax Credit Programs

USBCDC specializes in four main types of tax credit financing. Each tax credit program is designed to target specific community or economic outcomes, and some projects may benefit from using more than one program at the same time. Several states have programs that complement their federal counterparts.

Low-Income Housing Tax Credits:

  • Make up the largest single funding resource for developing affordable housing in the United States
  • Are allocated annually by state and local housing agencies to project developers to raise private capital that can be used to build or restore housing that have affordability requirements
  • Involve a highly competitive and selective application process on the part of the developer

New Markets Tax Credits:

  • Encourage investment in operating businesses and real estate developments in urban and rural low-income communities as defined by U.S. Census data
  • Are allocated by the U.S. Department of the Treasury to certified Community Development Entities (CDEs) to raise private capital that can be used to invest in low-income communities
  • Involve a highly competitive and selective application process on the part of the CDE

Historic Tax Credits:

  • Encourage investment to restore architecturally significant historic buildings for adaptive reuse
  • Are eligible to be claimed for substantial rehabilitation of qualified historic structures
  • Involve a three-part application to the National Park Service by the developer

Renewable Energy Tax Credits:

  • Encourage investment in power-generating solar, wind and other renewable energy installations
  • Are eligible to be claimed for installation of qualified renewable energy projects
  • Involve applications to the U.S. Department of the Treasury and state utility administrators by the developer

Syndications

USBCDC also makes federal and state investments available to qualified corporate investors and individuals and manages them throughout their compliance periods. Tax credit investments offer a dual benefit — they support the creation of positive community impacts and provide strong after-tax returns that compare favorably to other investments commonly held by corporate treasury groups.

Equal Housing Lender Equal Housing Lender

U.S. Bank and its representatives do not provide tax or legal advice. Each tax and financial situation is unique. Consult your tax and/or legal advisor for advice and information concerning a particular situation.

U.S. Bank is not responsible for and does not guarantee the products, services or performance of its affiliates and third parties.

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