U.S. Rep. Pat Tiberi (R-OH) revealed good news on Monday for Ohio residents, announcing that the Ohio Community Development Finance Fund will receive New Markets Tax Credit (NMTC) allocations from the Community Development Financial Institutions Fund within the U.S. Treasury Department.
“I congratulate the Ohio Community Development Finance Fund on receiving these significant allocations,” Tiberi said. “The Finance Fund has a proven track record of helping entities in underserved communities create jobs and encourage community investment.”
The Ohio Community Development Finance Fund will receive $55 million in a 2014 NMTC allocation. The funds will be used to invest in operating businesses and real estate projects in targeted low-income areas throughout the state, including revitalizing vacant buildings to improve local access to health care, and providing more healthy and affordable food, education and community facilities.
The NMTC, originally established 15 years ago, has proven to be a cost-effective incentive that encourages the private sector to invest in low-income rural communities and urban neighborhoods where access to capital is usually limited. The NMTC attracts capital from private investors by providing them with a credit as high as 39 percent against federal income taxes.
“I’ve seen firsthand projects funded by New Markets Tax Credits,” Tiberi said. “Whether it’s a new recreation center in Muskingum County or grocery stores in urban areas, I know the projects they help facilitate have long-lasting impacts on the community.”
Tiberi has remained a strong supporter of the NMTC program. Tiberi introduced a bill earlier this year that would make the program permanent. Also, Tiberi has received the Federal Legislator of the Year Award from the Novogradac Journal of Tax Credits for his work on NMTC legislation.