Senators Baucus and Tester praise NMTC-financed Mission Valley Aquatics project

Excerpt from KPAX.com in Missoula, MT: Montana CDC and U.S. Bank have secured $6 million in permanent financing to support the Mission Valley Aquatics community health facility. … “Supporting more than 40 jobs in Polson while building healthy community infrastructure is a win-win,” said Senator Max Baucus, who helped make New Markets Tax Credits available to rural areas as Chairman of the Senate’s tax-writing committee. “This is a smart investment into Montana jobs while bolstering an important economic corridor for Indian Country and the entire Flathead community.” Over the past ten years, Mission Valley Aquatics created a design that is well-suited for the needs of the town’s residents, gathered letters of support from community members, and raised more than $4.6 million in funding from private donors and lenders. The New Markets Tax Credit financing from U.S. Bancorp Community Development Corporation, the community development subsidiary of U.S. Bank, and Montana Community Development Corporation provides a critical piece of the project and allowed the facility to open for the summer season. Harnessing the power of NMTCs, Montana CDC raised U.S. Bank’s investment and leveraged funding from private donors and lenders to provide patient, low-cost capital to Mission Valley Aquatics. Senator Jon Tester is also a long-time supporter of the New Markets Tax Credit program. “The New Market Tax Credit has helped dozens of Montana communities grow and create jobs,” Tester said. “Investing in this Mission Valley Aquatics facility, with its strong community support, is a smart way to improve access to care and raise the quality of life for folks in Polson.” Read the whole...

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Bipartisan Bill to Permanently Extend New Markets Tax Credit Introduced in Senate

The New Markets Tax Credit Act of 2013 Increases the Flow of Private Sector Capital to Urban and Rural Communities Contact: Bob Rapoza, bob@rapoza.org, (202) 393-5225 Download PDF version of Press Release Washington, D.C. (June 11, 2013) – Today, Senators Jay Rockefeller (D-W.Va.) and Roy Blunt (R-Mo.) introduced legislation to provide a permanent extension for the New Markets Tax Credit (NMTC), an incentive for investment and job creation in communities with high unemployment and other measures of economic distress. The New Markets Tax Credit Act of 2013 would extend the Credit indefinitely by making it a permanent part of the Internal Revenue Code, and enhance the potential impact of the Credit by increasing the annual NMTC allocation. “Unemployment across the country is still too high. The New Markets Tax Credit is a proven tool for creating quality jobs and economic opportunity in rural and urban communities across the country. This is a market-driven economic development tool that works,” Senator Rockefeller, who sponsored the legislation, said in written remarks. A bipartisan effort since its inception, the NMTC began as a collaboration between Democratic President Bill Clinton and Republican Speaker of the House Dennis Hastert to attract capital to low income communities. The Credit provides private investors with a modest federal tax credit for investments made in businesses or economic development projects in census tracts in which the poverty rate is at least 20 percent, or median family income does not exceed 80 percent of the area median. Since it was enacted, the NMTC has generated billions of dollars in private investments in projects and communities that likely would never have received injections of patient capital otherwise. In fact, a survey conducted by the U.S. Government Accountability Office (GAO) found that 88 percent of NMTC investors would not have made their investments if not for the incentive of the Credit. “The New Markets Tax Credit Program has already had a positive impact in Missouri, leading to more than $2 billion in investments and...

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Senators Rockefeller (D-WV) and Blunt (R-MO) introduce NMTC extension legislation

THIS JUST IN. Senators Jay Rockefeller (D-WV) and Roy Blunt (R-MO) have introduced legislation that would indefinitely extend the NMTC. Read Senator Blunt’s press release below. —————————————— Senators Blunt, Rockefeller Introduce Legislation To Spur Investment, Jumpstart Job Creation In Low-Income Communities WASHINGTON, D.C. – U.S. Senators Roy Blunt (Mo.) and Jay Rockefeller (W.Va.) introduced a bipartisan bill today to make the New Markets Tax Credit (NMTC) Program permanent. The NMTC provides private investors with a 39 percent federal tax credit for investments made in businesses or economic development projects in some of the most distressed communities in the nation. The bipartisan bill is co-sponsored by U.S. Senators Ben Cardin (Md.), Susan Collins (Maine), and Maria Cantwell (Wash.). “The New Markets Tax Credit Program has already had a positive impact in Missouri, leading to more than $2 billion in investments and thousands of jobs,” Blunt said. “I’m glad to support this bipartisan bill to make this tax credit permanent so that we can continue to encourage investment, growth, and job creation in low-income communities nationwide.” “A New Markets Tax Credit investment in Wheeling, West Virginia helped bring the Wheeling Stamping Building back to life,” Rockefeller said. “The building was once a bustling hub of the metal stamping industry. After deteriorating and sitting dormant for decades, the New Markets Tax Credit helped finance the restoration of the building that created 300 construction jobs. Now the building houses 350 full-time employees in a community that needs good jobs.” Congress first authorized the NMTC program as part of the Community Renewal Tax Relief Act of 2000. The fiscal cliff deal included a two-year extension of the tax credit program with $3.5 billion in annual credit authority provided for 2012 and 2013. In Missouri, use of the NMTC Program can be traced either directly or indirectly to the creation of nearly 24,000 jobs between 2003-2010. More than 100 Missouri businesses have utilized the tax credit since it was created, for projects totaling $2.1 billion...

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New Report Demonstrates Federal Tax Credit Program’s Ability to Stimulate Economic Development, Create Jobs in Low Income Communities

New Market Tax Credit 2013 Progress Report Provides Evidence on Effectiveness of the Credit as a Tool for Driving Capital to Areas of Economic Distress  Washington, D.C. – A report issued today by a coalition of community development organizations and financial institutions details how the New Markets Tax Credit (NMTC) transformed private sector capital into patient, flexible capital for credit-starved businesses in low income communities across the country during the previous year. “The New Markets Tax Credit has a long track record in creating jobs and encouraging economic growth in our country’s most distressed neighborhoods and communities,” said José Villalobos, Senior Vice President of TELACU Los Angeles, California, and President of the NMTC Coalition. “Our latest New Markets Tax Credit Progress Report shows that the Credit made significant contributions to our economic recovery last year, including tens of thousands of jobs and billions in capital to businesses across the country.” In 2012 alone, the NMTC was responsible for the direct creation of almost 50,000 jobs in economically distressed urban and rural communities across the country, according to a new report from the NMTC Coalition. These 47,821 jobs represent an impressive two percent of the 1.8 million jobs created in America last year. The 2013 NMTC Progress Report provides detailed insights into how the NMTC was used in 2012, including the types of projects it helped financed and the areas where these projects occurred, and presents findings on the impacts of these investments, at both the micro and macro levels. “The New Markets Tax Credit has helped Cincinnati Center City Development Corporation (3CDC) and its partners invest more than $466 million in the Cincinnati’s Central Business District and Over-The-Rhine areas, strengthening core assets in the persistently distressed city center,” said Steve Leeper, President and CEO of 3CDC in Cincinnati, Ohio. “The result? Crime has dropped more than 50 percent, about 4,000 construction jobs have been created, and over 30 new businesses have moved into the neighborhood.” Unlike previous NMTC Progress...

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Turning federal tax credits into rural jobs

A Maine financial company has achieved mastery of a federal program to create jobs in communities that need them the most.

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