10.20.08 Kentucky Highlands Designated for $10 million in New Markets Tax Credit Authority
Monday, October 20, 2008
Congressman Harold “Hal” Rogers announced today that the U.S. Department of Treasury’s Community Develop Financial Institutions (CDFI) Fund has selected London-based Kentucky Highlands Investment Corporation (KHIC) to receive $10 million in New Markets Tax Credit (NMTC) allocation authority. Established in December 2000, the NMTC Program provides individual and corporate taxpayers with a credit against federal income taxes for making qualified equity investments in designated Community Development Entities (CDEs). Kentucky Highlands, a designated CDE, in turn makes financing available to local businesses and community activities to create jobs and expand business operations.
“It is no secret that rural businesses face difficult challenges in getting off the ground, bringing on and training qualified staff, expanding operations, and making capital improvements to compete in the 21st Century global economy,” Rogers stated. “Programs like the New Market Tax Credit Program infuse real, private sector dollars into rural areas and give the hopes of small business owners and entrepreneurs a head start and leg up on the competition. At the same time, Kentucky Highlands brings valuable technical expertise to the table to make these investments successful.”
The $3.5 billion in 2008 New Market Tax Credits are allocated annually through a competitive application and review. 70 organizations in 29 different states were selected from an applicant pool of 239 organizations for investments in low-income communities. KHIC expects to finance businesses and community facilities in southern and eastern Kentucky with a focus on healthcare, homeland security, and energy-related businesses by offering substantially more affordable financing with flexible terms.
Rogers has long supported the New Market Tax Credit program and continues to work to secure funding for important initiatives in the Fifth Congressional District.