Tax Credit Equity Opportunities

For Banks

Banks have historically recognized that the company’s long-term success depends on the vitality of their communities. Banks continuously invest in activities that promote their local community development. Banks continuously invest in activities that promote their local community development. Banks can receive Community Reinvestment Act (CRA) credit for those activities, making it easier to meet their CRA obligations and enhance their public CRA ratings. Those ratings impact a bank’s ability to receive regulatory approvals and engage in a number of industry activities. 

Yet banks are constantly being harangued, often unfairly, for not expanding efforts to provide solutions for the nation’s economic and social woes. Impact investing is a significant way for banks to contribute to addressing environmental, social and governance at the forefront of days’ economic and political discourse. All of the larger banks recognize impact investing as a core point of emphasis to achieve long-term success in the marketplace. Because the banking industry is a low margin business, most banks cannot afford to make wild expenditures to support their environmental initiatives or their sustainability plans. Monarch’s impact funds allow banks to redeploy dollars earmarked for federal and state income taxes to be invested in funds addressing their environmental and social objectives, satisfying their tax obligations and providing positive financial returns. Monarch’s funds allow banks to derive these benefits and financial returns out of capital, which has historically been wasted in empty tax payments. In the future, banks will be criticized if their tax payments are wasted rather than used to narrow the affordable housing gap, create a more sustainable future, or preserve history and contribute to urban redevelopment. Simply using corporate cash to make mere tax payments is wasteful when Monarch’s funds provide so many highly productive alternatives.

Whether your strategy is to narrow the affordable housing gap, create a more sustainable future, or preserve history and contribute to urban redevelopment, consider the many opportunities Monarch has to redirect your tax dollars to fuel those specific preferences and see the positive, quantifiable outcomes. Low Income Housing Tax Credit (LIHTC) and Historic Tax Credit (HTC) financed projects meeting CRA requirements are also eligible for CRA credit.  

Learn how to redeploy dollars earmarked for federal and state income taxes to address your CRA and sustainability objectives.

Banking CRA and Other Opportunities

Monarch is an industry leader in tax equity investing. With sufficient notice, interest and commitment, our acquisitions team can secure credits in these areas.

Federal or StateTax Credit Programs% Tax
Liability Offset
Offsets Corporate
Income Tax
Offsets Financial
Institution Tax
Transfer ProcessSatisfies ESG
FederalHistoric Rehabilitation75%XAllocableYes
FederalLow Income Housing75%XAllocableYes
FederalEnergy Investment75%XAllocableYes
AlabamaHistoric Rehabilitation100%XXAllocableYes
ArkansasHistoric Rehabilitation100%XAllocable & TransferableYes
ArkansasLow Income Housing100%XXAllocableYes
CaliforniaLow Income Housing100%XAllocable & TransferableYes
ColoradoHistoric Rehabilitation100%XAllocable & TransferableYes
ColoradoLow Income Housing100%XAllocableYes
ConnecticutHistoric Rehabilitation100%XAllocable & TransferableYes
DelawareHistoric Rehabilitation100%XTransferableYes
GeorgiaHistoric Rehabilitation100%XAllocable & TransferableYes
GeorgiaLow Income Housing100%XAllocableYes
HawaiiLow Income Housing100%XAllocableYes
IllinoisHistoric Rehabilitation100%XAllocable & TransferableYes
IllinoisLow Income Housing100%XTransferableYes
IowaHistoric Rehabilitation100%XAllocable & TransferableYes
KansasHistoric Rehabilitation100%XAllocable & TransferableYes
LouisianaHistoric Rehabilitation100%XAllocable & TransferableYes
MarylandHistoric Rehabilitation100%XAllocableYes
MassachusettsEntertainment100%XXAllocable & Transferable
MassachusettsHistoric Rehabilitation100%XTransferableYes
MassachusettsLow Income Housing100%XAllocable & TransferableYes
MinnesotaHistoric Rehabilitation100%XAllocableYes
MississippiHistoric Rehabilitation100%XAllocableYes
MissouriHistoric Rehabilitation100%XXAllocable & TransferableYes
MissouriLow Income Housing100%XXAllocable & TransferableYes
MontanaHistoric Rehabilitation100%XAllocable & TransferableYes
NebraskaHistoric Rehabilitation100%XXAllocable & TransferableYes
NebraskaLow Income Housing100%XXAllocableYes
New JerseyEntertainment100%XTransferable
New JerseyGrow NJ100%XTransferableYes
New JerseyERG100%XTransferableYes
New YorkHistoric Rehabilitation100%XXAllocableYes
New YorkLow Income Housing100%XAllocableYes
North CarolinaHistoric Rehabilitation100%XAllocableYes
North CarolinaEnergy Investment50%XAllocableYes
OhioHistoric Rehabilitation100%XXTransferableYes
OklahomaHistoric Rehabilitation100%XXAllocable & TransferableYes
OklahomaLow Income Housing100%XAllocable & TransferableYes
PennsylvaniaHistoric Rehabilitation100%XXAllocable & TransferableYes
Rhode IslandEntertainment100%XXTransferable
South CarolinaAbandoned100%XAllocableYes
South CarolinaHistoric Rehabilitation100%XAllocableYes
South CarolinaLow Income Housing100%XAllocableYes
South CarolinaMill100%XXAllocableYes
TexasHistoric Rehabilitation100%Allocable & TransferableYes
VirginiaHistoric Rehabilitation100%XAllocableYes
West VirginiaHistoric Rehabilitation100%XAllocableYes
WisconsinHistoric Rehabilitation100%XTransferableYes
WisconsinLow Income Housing100%XAllocableYes

Monarch offers numerous income opportunities for Banks:

Income Opportunities for Banks

  • Financing on construction and perm loans
  • Fees on construction loans and perm loans (if provided)
  • Interest income on the loans
  • Cash flow from the projects (generally not a large amount but varies from project to project)

Other Opportunities for Banks

  • Deposits
    • Projects have significant cash reserves (operating, marketing, replacement reserves, etc.)
    • Developers may move some or all of their money to the sponsor bank
  • New relationships with developers that often are involved in other ventures
  • Political and public relations opportunities as many local and state politicians support these types of deals and make appearances for groundbreaking ceremonies and grand openings
  • Advertising as banks receive promotion through project signage
  • Monarch will also maintain deposits with our partner banks

Contact us for more information about impact investing, federal and state tax credits.