CALIFORNIA BUSINESS MINUTE
New Markets
11-06-09
Hi, I am Tim Johnson and welcome to the California Business Minute.
This past week the US Treasury announced the Community Development entities that
were the recipients of the most recent allocation of New Market Tax Credits.
“New Markets Tax Credits have proven to be remarkably effective job creators,
engines of economic development," Treasure Secretary Geithner said in a prepared
statement.
"The New Markets Tax Credit Program is promoting private-sector investment in
our nation's communities and is helping to stimulate economic growth, create
jobs and bringing new opportunities to Americans most in need," commented Donna
Gambrell, director of the Treasury’s Community Development Financial Institutions
Fund. "This innovative federal program is helping to finance numerous businesses
and real estate projects across the country – projects that may not have been
financed if not for New Markets Tax Credits."
For California, Douglas Bystry, president and CEO of the Orange County-based
Clearinghouse CDFI was elated. “We received notice of a $100,000,000 allocation.
We are one of a total of 99 allocatees, 10 of which are in California. Out of
the 10 in California we are the only one to receive an allocation of $100,000,000,
the others in California were $55,000,000 and below. Only two allocatees received
awards higher than us in the amounts of $100,000,000 and $115,000,000…both in
New York and $125,000,000 in Maine.”
The New Markets Tax Credit Program promotes social investment in underserved
communities by permitting taxpayers to receive a credit against federal income
taxes for making qualified equity investments in community development entities.
New Markets Tax Credits provide a seven-year tax credit to investors of 39 percent.
To date, since 2000 over $14 billion of private-sector capital has been invested
through the NMTC Program into urban and rural communities throughout the country.
Data reported through 2008 shows that $12.7 billion dollars of NMTC capital has
been invested into approximately 2,000 businesses and real estate developments.
A complete list of the organizations selected and additional information on the
NMTC Program can be found on the CDFI Fund's web site at: www.cdfifund.gov .
I am Tim Johnson and this has been the California Business Minute.
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