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V O L . X X I N O. X X V I I N OV E M B E R 3 0 , 2 0 1 5 28 A s CEO of CEI Capital Management LLC, a subsid- iary of the Brunswick-based nonprofi t community development corporation Coastal Enterprises Inc., Charlie Spies says his single-minded focus is to drive capital into "very distressed" local economies, both in Maine and beyond. His primary tool is the New Markets Tax Credit, a program launched by the federal government in 2000 that's designed to stimulate investment and economic growth in low-income com- munities typically overlooked by con- ventional investors. e program attracts investors to those low-income areas by off ering a 39% federal income tax credit over a seven-year investment period. e tax credits are allocated by Community Development Entities like CEI Capital Management that seek allocations in a highly competitive process. Maine launched its own initiative in 2012, the New Markets Capital Investment program, which is modeled after the federal program and is overseen by the Finance Authority of Maine. Spies says both programs have proven to be an important fi nancing tool in Maine, in part because the New Markets program can leverage addi- tional investment from other sources, helping swing projects that otherwise might never get off the ground. "I'm not sure where Maine stands now, but three years ago, it was fourth in the nation, per-capita, in the use of New Markets tax credits," he says. Since 2004, CEI Capital Management has placed $913.4 million in combined federal and state New Markets Tax Credit investments into 87 projects from Maine to Hawaii. In June, it was awarded $55 million in a new federal allocation and its aggregate total makes it the largest Community Development Entity among those qualifi ed by the U.S. Treasury Department to allocate the tax credits. Almost one-third, or $274 million of its combined NMTC investments, helped to fi nance 22 projects in Maine. Together, according to CEI Capital Management's tally sheet, the Maine projects have: Created or preserved 1,717 permanent full-time jobs Created 460 construction jobs Developed 367,384 square feet of property Protected 577,713 acres of land Capitalized $3 million of targeted loan funds, $700,000 of employee training and $340,000 of educational programs P H O T O / T I M G R E E N WAY Leveraging capital CEI uses the New Markets Tax Credit program to funnel capital into distressed local economies B y J a m e s M c C a r t h y F O C U S 800.777.5244 www.TalkWithNorton.com Specialists in business insurance and employee benefits. Talk with Norton. MAXIMIZE THE REWARDS. Minimize The Risk. Cyber Liability Workers' Compensation Property & Casualty P H O T O / T I M G R E E N WAY Charlie Spies, CEO of CEI Capital Management LLC, says the New Markets Tax Credit program is a key incentive to make investments in distressed local economies.

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