$210 million in tax credit awarded to community development in Louisiana
POSTED: Thursday, May 16, 2013 - 11:00pm
UPDATED: Thursday, May 16, 2013 - 11:04pm
Baton Rouge, La — U.S. Senator Mary L. Landrieu, D-La., and U.S. Representative Cedric Richmond, D-La., today announced $210 million in New Market Tax Credit (NMTC) awards for four Louisiana community development entities (CDEs) that are committed to financing businesses and economic development in the state. The NMTCs will be marketed to investors to encourage private sector investment in communities facing economic difficulties.
“These credits have a proven record of positively impacting low-income neighborhoods in Louisiana by bringing in much needed investment. They help create jobs and spur economic growth by empowering community development groups to support important local projects,” Sen. Landrieu said.
“This program demonstrates the power of public-private partnerships and offers investment incentives which, in turn, are leveraged to create jobs and rejuvenate our neighborhoods,” Rep. Richmond said. “I introduced the Louisiana version of the New Markets Tax Credit when I was a State Representative back in 2005, and I will continue to be a strong supporter and advocate for programs like New Markets Tax Credits because of its obvious economic benefits.”
The NMTC program allows taxpayers to obtain a credit against federal income taxes in exchange for making qualified equity investments in low-income communities through CDEs. These CDEs offer the tax credits to investors in exchange for stock or a capital interest in the CDE. All the qualified equity investment is used to help finance community development projects in low-income communities to stimulate economic growth and create jobs. Since the first allocations were awarded in 2003, the NMTC program has generated $45 billion in capital investment in businesses and economic development projects in low-income communities.
The following Louisiana CDEs are receiving awards:
• $75 million to Advantage Capital Community Development Fund in New Orleans. The fund was established to bring professionally managed risk capital to small and medium-sized operating (non-real estate) businesses in low income communities. The fund seeks communities with the potential to transform through explosive growth and job creation but lack start-up or expansion capital.
• $50 million to First NBC Community Development Fund (FNBC) in New Orleans. FNBC will use the funds to make loans to operating businesses and redevelopment projects in the low-income communities of the New Orleans Metropolitan Area.
• $45 million to Whitney New Markets Fund in New Orleans to invest in low-income communities within its five state geographic footprint. Targeted projects include assisting with ongoing disaster recovery along the Gulf Coast, supporting community facilities that provide goods and services, and operating businesses that create quality jobs.
• $40 million to Stonehenge Community Development in Baton Rouge. Stonehenge targets non-real estate projects that have a direct economic impact on a minority community. Targeted projects also include non-profits that provide social services to the minority community or provide for economic development prospects in targeted minority census tracts.