FROM THE OFFICE OF PUBLIC AFFAIRS

May 17, 2004
js-1557

Treasury Secretary John Snow Presents $748 Million in Economic
Development Tax Credits in New York City to Help Low-Income
Communities
through New Market Tax Credit Program

Secretary John W. Snow today presented New Markets Tax Credits Awards totaling $748 million to seven New York area economic development organizations that promote business and economic development in low-income communities.

The presentation of the awards took place at Federal Hall in New York City. 

The seven organizations receiving awards are: Empowerment Reinvestment Fund, LLC ($25 million), GreenPoint New Markets, L.P. ($85 million), HEDC New Markets, Inc. ($135 million), Independence Community Commercial Reinvestment Corporation ($113 million), New Jersey Community Development Entity, LLC ($125 million), Related Community Development Group, LLC ($140 million), and TCG Community Enterprises, LLC ($125 million).

“The spirit and resilience of the New York area has been unwavering since the attacks of September 11.  The New Market Tax Credits awards we are presenting to seven New York area community development organizations are another sign of support for the rebuilding effort that continues today.  These awards will bring new hope for prosperity and growth in communities in the New York area that have been particularly hard hit,” said Secretary of the Treasury, John W. Snow

The Department of the Treasury announced on May 6, that 62 organizations have been selected to receive a total of $3.5 billion in tax credit allocations through the second round of the New Markets Tax Credit (NMTC) Program. 

The New Market Tax Credit Program attracts private-sector capital investment into urban and rural low-income areas to help finance community development projects, stimulate economic opportunity and create jobs in the areas that need it most.   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). 

Substantially all of the taxpayer's investment must in turn be used by the CDE to make qualified investments supporting certain business activities in low-income communities.  The credit provided to the investor totals 39 percent of the initial value of the investment and is claimed over a seven-year credit allowance period.  The 62 organizations receiving tax credit allocations this year were selected through a competitive application and rigorous review process.

"From foresting businesses in the communities of north-central Maine, to a start-up manufacturing business in south-eastern Ohio, to child-care facilities and needed shopping centers in many of our inner-city low-income neighborhoods, the New Markets Tax Credit Program has already begun to improve the communities in which these investments are being made," said Secretary Snow, highlighting the work already underway by organizations that received allocations of tax credits last year.

The NMTC Program is administered by Treasury's Community Development Financial Institutions (CDFI) Fund.  The CDFI Fund anticipates that applications for the third round of the NMTC Program will be available during the summer of 2004.  A complete list of 2004 New Markets recipients and additional information can be found on the CDFI Fund's Web site:  www.cdfifund.gov/