Legislation introduced by U.S. Sen. Shelley Moore Capito (R-WV) this week would promote economic development in rural regions that have been hit hard by coal industry job losses.
The Creating Opportunities for Rural Economies (CORE) Act would earmark a portion of New Markets Tax Credits for investments made in low-income, underserved communities in West Virginia and elsewhere across the country.
“West Virginia and other states facing severe job losses in the coal industry are in dire need of new economic investment,” Capito said. “By leveraging the power of the New Markets Tax Credit Program, the CORE Act presents a tremendous opportunity for underserved communities across the country to receive critical funding for projects that will help create new job opportunities, spur business investment, revitalize communities and strengthen struggling economies.”
Enacted in 2000, the New Markets Tax Credit program encourages investments in public projects like mixed-use residential developments, health care facilities and manufacturing plants with a 39-percent tax credit over a seven-year period.
The New Markets Tax Credit program will dole out $3.5 billion in tax credits over the next three years. Capito’s legislation would set aside 5 percent of annual credit allocation for investments in 12 states that suffered coal industry losses from 2012 to 2015.
New Markets Tax Credits have totaled more than $40 billion since 2000, but states have not benefited equally under the program. West Virginia, for example, has received $97 million in investments in 17 projects over that time.
The CORE Act would take steps to boost investments and economic development in West Virginia and other underserved areas.