The Mississippi Band of Choctaw Indians recently closed a New Markets Tax Credit transaction related to its two new early childhood education centers and an elementary school expansion — resulting in a $2.3 million benefit to the Tribe.

“We are extremely appreciative of our financial partners and the effort everyone undertook to make this happen,” Cyrus Ben, Tribal Chief of the MBCI, said in a news release. “In addition to immediately benefitting Choctaw children, the NMTC program will allow us to continue to make investments in our future.”

The New Markets Tax Credit (NMTC) Program attracts private capital into low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making equity investments in specialized financial intermediaries. The credit totals thirty-nine percent of the original investment amount and is claimed over a period of seven years.

The Tribe opened both the Pearl River and Standing Pine Early Childhood Education Center(s) and the Pearl River Elementary School expansion in late 2020.

The projects received a total tax credit allocation of $15,000,000 – this translated into a final net benefit to the Tribe of $2,323,190. As of the closing $1,573,190 was deposited into the Tribe’s coffers. An additional $750,000 in funds will be used to further expand the Pearl River Early Childhood Center. Dakotas America provided the tax credit allocation and Wells Fargo was the tax credit investor in the projects.