June 6, 2006
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Treasury Announces Awards for
More than $850 Million
in Gulf Coast Community Development
Awards Announced Under 4th Round of New Markets Tax Credit Program

U.S. Treasury Community Development Financial Institutions Fund Director Art Garcia highlighted tax credit awards to 17 organizations serving the Gulf Coast region with more than $850 million in investment in low-income communities under the 2006 round of the New Markets Tax Credit (NMTC) Program in New Orleans, La. and Biloxi, Miss. today.

Today's events at The Magnolia in New Orleans and the Coastal Family Health Center in Biloxi were part of a series of Treasury announcement this week in the Gulf Coast region.  Last week, Treasury Secretary John W. Snow announced the 63 organizations selected nationally to receive tax credits for $4.1 billion in investment under the fourth round of the NMTC Program.

"The economic investment and jobs the New Markets program encourages are exactly what the Gulf Coast region needs to get back on its feet and running," Secretary Snow said. "I was pleased to announce last week's awards for the neediest communities across the country, but I am especially proud of the hope this program offers to Gulf."

The NMTC Program attracts private-sector capital investment into the nation's urban and rural low-income areas to help finance community development projects, stimulate economic growth and create jobs.

Thirteen organizations in the Gulf region and across the nation received tax credit awards from the additional $600 million in NMTC allocation authority made possible by GO Zone legislation following Hurricane Katrina. Four other organizations headquartered in the Gulf area received allocations from the $3.5 billion in NMTC allocations initially available this round.

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.  Substantially all of the taxpayer's investment must in turn be used by the CDE to make qualified investments in low-income communities.  The 63 organizations were selected through a competitive application and rigorous review process.

The NMTC program is administered by Treasury's Community Development Financial Institutions (CDFI) Fund.  Throughout the life of the NMTC Program, the CDFI Fund is authorized to allocate to CDEs the authority to issue to their investors up to the aggregate amount of $16 billion in equity as to which NMTCs can be claimed, including $1 billion for use in the GO Zone.  In four rounds to date, the CDFI Fund has made 233 awards totaling $12.1 billion in tax credit authority.

"The New Markets Program brings much-needed sources of private capital to the Gulf region," said CDFI Fund Director Garcia.  "We know from past experience, this incredibly successful program and the investment it brings will help heal the Gulf Coast. The additional funds made available by GO Zone legislation guarantee that over $600 million in investment authority will be directed specifically to the distressed areas of the Gulf." 

"The New Markets program is achieving its goal of attracting sources of private capital to our nation's low-income communities," Garcia continued. "It is exceeding all expectations - with awardees committing to provide extremely innovative and flexible financing tools for projects located in more severely distressed communities than minimally required by program rules."

Organizations receiving awards for their investment in the Gulf region include:   Hibernia Community Renewal Fund LLC, National Cities Fund LLC, Liberty Bank and Trust Company, Urban Development Fund LLC, Chase New Markets Corporation, Chevron NMTC Fund LLC, CCG Community Partners LLC, American Community Renewable Energy Fund LLC     , Greystone CDE LLC  , National Tribal Development Association, National New Markets Fund LLC, Capital Link, Inc., Enterprise Corporation of the Delta, MK La Charitable Health Care Facilities Funds, Advantage Capital Community Development, Enhanced Delta Community Development LLC, and Stonehenge Community Development LLC of Baton Rouge.

A complete list of the 63 organizations selected nationally and additional information on the NMTC Program can be found on the CDFI Fund's web site at: www.cdfifund.gov.