The U.S. Treasury Department announced $155 million in new markets tax credit allocations for four Wisconsin-based community development entities.
The Wisconsin organizations receiving new markets tax credit allocations are: West Allis-based First-Ring Industrial Redevelopment Enterprise Inc., $20 million; Madison-based Greater Wisconsin Opportunities Fund Inc., $35 million; Milwaukee Economic Development Corp., $40 million; and PNC Community Partners Inc., $45 million. PNC Community Partners is based in Pittsburgh and will distribute its tax credits nationally, but Wisconsin is one the seven predominant states that it serves.
The new markets tax credit program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a credit against federal income taxes for making equity investments in vehicles known as Community Development Entities. The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period.
“The New Markets Tax Credit addresses one of the most significant obstacles to economic development that low-income communities face: a lack of access to patient, private investment capital,” said Treasury Assistant Secretary for Financial Institutions Cyrus Amir-Mokri.
