Four Massachusetts-based entities are among the recipients of New Markets Tax Credit funding from the federal government, with Massachusetts Housing Investment Corp. (MHIC) receiving the largest slice of the total $169 million.
MHIC will receive $63 million. Other recipients include: Boston Community Capital ($53 million); Wainwright Bank & Trust Co. ($32 million); and MassDevelopment ($21 million).
"MHIC is naturally pleased about today’s award. It means that we can build on the expertise we have developed using New Markets Tax Credit (NMTC) financing for projects that create jobs and economic opportunity throughout New England," said MHIC President Joe Flatley.
The 99 organizations nationwide to receive awards were selected from a pool of 250 applicants that requested more than $23.5 billion. The largest award was $77 million and the average award was $35 million, according to a statement.
Established by Congress in December 2000, the New Markets Tax Credit program allows individuals and corporations to receive a credit against their federal income tax liabilities. In turn, the taxpayers must invest in community-development entities that support real estate projects and job growth. The credit is equal to 39 percent of the cost of an investment, and the investor claims it over a seven-year period.
MHIC will use its 2010 NMTC allocation to target the most disadvantaged communities, both urban and rural, in six New England states. Financing will be targeted to projects and businesses in distressed communities that will maximize job creation, encourage private investment, initiate or accelerate community revitalization, and increase economic opportunity and services for low-income persons and residents of low-income communities.
Boston Community Capital (BCC) will use its allocation to finance businesses and real estate developments in rural and urban low-income communities. The NMTC allocation will allow BCC to improve current offerings by allowing it to increase the volume of investments made in high-impact, primarily rural projects; provide more flexible terms to borrowers; and develop new businesses and financing tools serving low-income communities.
MassDevelopment will use its allocation to offer senior and subordinated debt for the acquisition, expansion, construction and rehabilitation of facilities in low-income communities in Massachusetts.
Wainwright Bank & Trust will partner with local community development corporations to finance projects that support transit-oriented development and to expand the range of products and terms it can offer. Wainwright will also offer technical assistance to groups working at the street-level, to build projects that will spur growth and stimulate other investments, according to a statement.
