Federal Coordinator for Gulf Coast Rebuilding Remarks on Tax Credits for Go Zone Investment

Release Date: October 5, 2007

For Immediate Release
Office of the Federal Coordinator for Gulf Coast Rebuilding
Contact: Brendan LaCivita, 202-572-8878

Latest tax credits will direct over $400 million to Katrina GO Zone

(New Orleans, LA) -- Donald E. Powell, the president's top official for Gulf Coast rebuilding, today remarked on the Department of Treasury Community Development Financial Institutions (CDFI) Fund's decision to award $3.9 billion in tax credits to 61 awardees investing in rural and urban low-income communities across the United States. The awards are being made under the 2007 round of the New Markets Tax Credit (NMTC) Program and will include $400 million allocated specifically for the redevelopment and reconstruction of the Hurricane Katrina Gulf Opportunity Zone (GO Zone).

"These tax credits are an excellent incentive for investors to focus on communities desperately needing economic development," Powell stated. "And I cannot think of a better recipient than the communities here in the Gulf Coast region. I would like to thank Secretary Paulson and the Treasury Department for their ongoing interest in support of Gulf Coast rebuilding"

Powell participated in a tour of Ochsner Baptist Medical Center, beneficiaries of last year's tax credits, with Deputy Secretary of the Treasury Robert Kimmitt and CDFI Fund Director Kimberly Reed.

"It's very encouraging to be here and see the progress that's been made with the help of last year's tax credits," stated Powell. "We encourage this year's awardees to target their investments in hard hit-areas such as the Gulf Coast region, because the tax credits enhance the economic vitality of the region by spurring community development and job creation."

The NMTC program was created by Congress in 2000 to provide individual and corporate taxpayers with a credit against federal income taxes for making qualified equity investments in Community Development Entities (CDE). The CDEs are required to invest the proceeds in low-income communities.

For the last twenty-three months, the Office of the Federal Coordinator for Gulf Coast Rebuilding has been engaged in facilitating and streamlining various components of the recovery effort, providing key federal support and resources to local leaders, and reinforcing the federal government's commitment to the people of the Gulf Coast.

www.dhs.gov/gulfcoastrebuild

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* Corrected spelling in third sentence, second paragraph, and noted location.

This page was last modified on October 5, 2007