WASHINGTON, April 4, 2002—The New Markets Tax Credit Program, which provides substantial tax benefits for private investment in loan and venture capital funds serving low-income areas, will be the topic of two ARC and U.S. Department of the Treasury–sponsored workshops in April. Over one-third of the Appalachian Region may meet the program's criteria for low-income areas.

Specifically designed for potential investors and fund managers, the regional workshops will take place April 8, 2002, in Huntsville, Alabama, and April 10, 2002, in Pittsburgh, Pennsylvania. Each session will begin at 10:00 a.m. and conclude by 4:00 p.m. The fee for materials and lunch is $35.00.

Representatives of the U.S. Department of the Treasury's Community Development Financial Institutions (CDFI) Fund and the Internal Revenue Service (IRS) will review new regulations concerning the New Markets Tax Credit Program. Discussion will also focus on the newly opened certification processes for these tax credit funds.

The workshops are designed for potential fund investors, including financial institutions, corporations, and individuals; and for potential fund managers, including for-profit, nonprofit, and government economic development organizations. Topics to be covered related to the development and operation of new markets funds include real estate equity and debt financing, business lending, and venture capital investing.

The New Markets Tax Credit Program authorizes the U.S. Department of the Treasury to provide tax credits of 39 percent on up to $15 billion of private investment in low-income areas. The program is designed to boost local business development and job growth through the financing of industrial parks, spec buildings, retail development, business loans, and equity investments.

Approximately 35 percent of the Appalachian Region is eligible to use these credits, including more than 45 percent of West Virginia and 45 percent of the Appalachian areas of Kentucky, Maryland, Mississippi, and Ohio. [A complete listing of eligible census tracts in Appalachia is available from ARC.]

Temporary rules issued by the IRS involving the New Markets Tax Credit Program will be highlighted during the workshops, as will CDFI's applications for certification, which are now being accepted on a rolling basis. The Treasury Department anticipates that it will announce a notice of allocation availability for the issuance of New Markets tax credits in the near future.

Workshop partners include the Federal Deposit Insurance Corporation, the Federal Home Loan Bank of Atlanta, the Federal Home Loan Bank of Pittsburgh, the Federal Reserve Bank of Cleveland, the Alabama Department of Economic and Community Affairs, the Pennsylvania Department of Community and Economic Development, and the West Virginia Development Office.

For information on the New Markets Tax Credit Program, visit the U.S. Department of the Treasury Web site.