$90 million in tax credits landed by MMCDC in DL
The U.S. Treasury announced $3.5 billion in tax credits to help stimulate economic growth and create jobs. Midwest Minnesota Community Development Corporation will direct $90 million of these credits toward business development in Minnesota, North Dakota, South Dakota and Wyoming.
"This announcement is great news for our economy, particularly in the rural sector, where we will put the majority of our credits to work," said Arlen Kangas, president of MMCDC. "We applaud Sen. Coleman, Congressman Peterson and Sen. Klobuchar for their bipartisan support of the New Markets Tax Credit Program."
The program, administered by the U.S. Department of the Treasury, gives private investors credit against federal income tax in exchange for investments in business and housing in underserved communities, including rural areas.
MMCDC matches qualified projects with investors, who in turn are eligible to receive tax credits through this $90 million allocation. MMCDC also is responsible for monitoring project compliance with tax credit rules.
MMCDC's proposed project pipeline includes a number of energy-related projects. Projects are not finalized until after a period of negotiation with investors and businesses.
Once finalized, borrowers are provided with flexible, nontraditional loans at favorable rates and terms.
Projects are typically located in distressed areas. Ninety-five percent of MMCDC's New Markets-related projects are made in census tracts with one or more of the following characteristics: poverty rates greater than 30 percent; median family income that is 60 percent or less of statewide median family income; unemployment rates 1.5 times the national average; location within Indian reservations, Hope VI redevelopment areas, SBA HUB Zones, Minnesota JOB Zones or counties with high out-migration; or involve targeted populations, such as low-income and rural populations.
MMCDC is a nonprofit company that provides capital resources and innovative ideas to assist in successful business and community development throughout Minnesota and the Midwest.
It operates offices in Detroit Lakes and Minneapolis, Minn. and derives its governing board membership from its Special Impact Area--Eastern Polk, Red Lake, Hubbard, Mahnomen, Becker, Pennington and Clearwater counties and the White Earth Reservation.