Dunkiel Saunders attorneys Drew Kervick and Mark Saunders recently assisted Chroma Technology Corp. close a twenty-two million dollar New Markets Tax Credit financing for the renovation and expansion of its manufacturing facility in Bellows Falls, Vermont. Chroma is an employee-owned company and certified B-Corp that manufactures interference filters for the ultra-violet, visible and near-infrared portions of the spectrum.
Chroma’s continued growth has led to a demand for additional production space, as well as new machinery and equipment. The current project will allow Chroma to add approximately 25,000 square feet to its facility and additional machinery and equipment to its operations.
Chroma’s expansion was financed with funding from U.S. Bancorp Community Development Corporation, People’s United Bank, Vermont Economic Development Corporation and the Town of Rockingham, as well as a New Markets Tax Credit allocation from Vermont Rural Ventures and Massachusetts Housing Investment Corporation. Chroma partnered with the Brattleboro Development Credit Corporation to develop the project, utilizing a complex sale-leaseback structure.
The New Markets Tax Credit program is a federal program that incentivizes investment in low-income communities by providing private investors with federal tax credits for qualifying investments in businesses or economic development projects in economically distressed areas. To learn more about financing projects using federal tax credit programs such as New Markets Tax Credits or Low Income Housing Tax Credits, contact Drew Kervick.