[CircleUp] CDFI Fund News: Treasury Awards $1.5 Billion Through Recovery Act to Encourage Private Sector Investments in Communities Around the Country

[Staci Lacroix]

Treasury Awards $1.5 Billion Through Recovery Act to Encourage Private
Sector Investments in Communities Around the Country
<http://www.cdfifund.gov/news_events/CDFI-2009-31-New-Markets-Tax-Credit
-Recovery-Act-Awards.asp>  
May 27, 2009 
[CDFI-2009-31] 

Awards Announced Under New Markets Tax Credit Program 

Boston, MA - Just 100 days since the President signed into law the
American Recovery and Reinvestment Act (Recovery Act), Treasury
Secretary Tim Geithner today announced $1.5 billion in New Markets Tax
Credit (NMTC) awards for 32 organizations throughout the country. With
resources made possible through the Recovery Act, the NMTC Program
injects private-sector capital investment into communities around the
country to create jobs, stimulate economic growth, and jumpstart the
lending necessary for financial stability. The awardees announced today
are planning investments in renewable energy projects, charter schools,
health care facilities, manufacturing companies and retail centers. 

"The Recovery Act was a crucial step toward restoring economic growth,
getting Americans back to work, and strengthening our nation's financial
stability" said Secretary Geithner. "Many communities have been left
with a shortfall of financial support and are unable to pursue
desperately needed projects, leaving residents to fall even further
behind. The New Markets Tax Credit program helps break that cycle by
providing an incentive to invest in communities to break ground on new
projects, create jobs, and offer much needed services." 

The 32 organizations receiving awards have identified principal service
areas covering 33 states, the District of Columbia, and Puerto Rico. The
NMTC Program, established by Congress in December 2000, permits
individual and corporate taxpayers to receive a credit against federal
income taxes for making qualified equity investments in investment
vehicles known as Community Development Entities (CDEs). The credit
provided to the investor totals 39 percent of the cost of the investment
and is claimed over a seven-year period. A majority of the taxpayer's
investment must in turn be used by the CDE to make qualified investments
in low-income communities. 

Secretary Geithner's announcement was made today at Project Hope, a New
Markets Tax Credit award recipient in Boston, MA. Secretary Geithner was
joined by Massachusetts Governor Duval Patrick and Community Development
Financial Institutions (CDFI) Fund Director Donna Gambrell. A division
of the Department of Treasury, the CDFI Fund, administers the NMTC
program. 

"We are here today at Project Hope because it's a shining example of how
the New Markets Tax Credit can be utilized to transform communities and
improve the quality of life for the local residents," said CDFI Fund
Director Donna J. Gambrell. "Through $4.8 million in New Markets Tax
Credit financing, the center we are gathered at today is providing
expanded adult education, job placement and career development services
and is also Roxbury's first certified green building." 

To date, close to $12 billion of private-sector capital has been
invested through the NMTC Program into urban and rural communities
throughout the country. Data reported through 2007 shows that $9 billion
dollars of NMTC capital has been invested into approximately 2,000
businesses and real estate developments - helping to develop or
rehabilitate over 68 million square feet of real estate, create 210,000
construction jobs, and create or maintain 45,000 full time equivalent
jobs at businesses in low-income communities. 

A complete list of the 32 organizations selected and additional
information on the NMTC Program can be found on the CDFI Fund's web site
at: www.cdfifund.gov. 

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