NMTC program promotes job creation through investment in low-income communities
The Wisconsin Housing and Economic Development Authority (WHEDA), through its Community Development Entity, the Greater Wisconsin Opportunities Fund, Inc.
(GWOF), is the recipient of $35 million in New Markets Tax Credits (NMTCs) by the U.S. Department of the Treasury in the 2012 round of the NMTC program.
The tax credits are a resource to help fuel job creation and economic development efforts by promoting equity investment in low-income urban and rural communities. WHEDA allocates NMTCs to enhance financing for projects in highly distressed areas throughout Wisconsin that have demonstrable community impact.
“WHEDA is thrilled to announce this exciting news that will help generate job creation and economic activity throughout Wisconsin,” said WHEDA executive director Wyman Winston. “Prior to this round, the $415 million in New Markets Tax Credits WHEDA and its partners won since 2004 created and/or retained thousands of jobs in local communities. Recipients of the tax credits have included manufacturers, small technology firms, inner-city shopping centers, commercial real estate developments, retail stores, hotels, and health care facilities. The effects on communities where the tax credits are invested are positive and immediate.
Receiving these tax credits is phenomenal news for all of Wisconsin and its economy.”
Winston said the announcement is especially significant for Milwaukee.
“A sizeable portion of the tax credits will be used to invest in projects in the Transform Milwaukee area further demonstrating our ongoing commitment to revitalizing Wisconsin’s first-class city,” Winston added.
Transform Milwaukee is a $100 million investment by WHEDA designed to restore economic prosperity, create jobs and rejuvenate housing in the following areas: the 30th Street Corridor, the Menomonee Valley, the Port of Milwaukee and the Aerotropolis just south of Mitchell International Airport.
The NMTC program, originated by Congress in 2000, provides individual and corporate tax incentives to investors who make equity investments in Community Development Entities, such as GWOF, which invest in rural and urban low-income communities. Businesses involved in NMTC deals can obtain benefits including lower interest rates on loans, interest-only payments for seven years, non-traditional financing not available in the marketplace and access to a reduced cost of capital. Communities benefit from jobs created through investments as well as greater access to public facilities, goods, and services.