United Bancorporation of Alabama Inc. (United), the holding company for United Bank, announced recently it has been awarded $65 million in New Markets Tax Credit (NMTC) allocation by the Department of the Treasury.

The award is the result of United’s ongoing commitment to enhancing the economic vitality of low-income communities in Alabama, and in northwest Florida.

The announcement marks the first direct allocation United has received. United has previously partnered with other community development entities as a financing partner on NMTC projects.

“Earning this allocation is a reflection of the work United has done, and will continue to do, to positively impact families and businesses across our markets,” said Robert R. Jones III, president and CEO. “The announcement reaffirms for us that our work developing creative products, services and partnerships to strengthen the financial stability of our communities is critical to the economic health of our area.”

The New Markets Tax Credit was enacted by Congress in 2001 as a federal effort to stimulate private investment and economic growth in low income urban neighborhoods and rural communities that lack access to the capital needed to support and grow businesses, create jobs and sustain healthy local economies. The NMTC is a 39 percent federal tax credit, taken over seven years, on investments made in economically distressed communities. The awards bring the total amount awarded through the New Markets Tax Credit Program to $50.5 billion.

United has previously earned the designation of being a Community Development Financial Institutions (CDFI) from the U.S. Treasury, and was last certified as a CDFI in May 2016. With a primary mission of promoting community development, offering financial products and services to defined low-income target markets, CDFIs promote economic growth by financing businesses, creating jobs and rebuilding neighborhoods. United earned its designation in part by going above and beyond traditional community involvement efforts to include expanded financial literacy projects, enhanced credit building and homebuyer initiatives, and the creation of small business lending and support programs.