Finance Fund Receives $2 Million in Ohio New Markets Tax Credits to Spur $5.1 Million in Economic Development in Ohio's Distressed Communities
COLUMBUS, Ohio, July 11, 2012 /PRNewswire/ -- Finance Fund will receive $2 million out of a total of $10 million in Ohio New Markets Tax Credits (NMTC) announced by the Ohio Department of Development. The statewide nonprofit Finance Fund is one of six Ohio-based community development organizations to receive the Ohio New Markets Tax Credits. Finance Fund will use the allocation to attract at least $5.1 million in additional economic investments in Ohio's struggling communities.
Ohio's NMTC program provides investors with state tax credits in exchange for delivering below-market-rate investment options to Ohio businesses.
This is the third round of Ohio NMTC awarded to Finance Fund since the state program began in October 2010. "It's gratifying to know that the Department trusts Finance Fund to carefully steward these funds to support projects that meet community needs, are high impact and catalytic," said Finance Fund CEO James R. Klein. To date, Finance Fund has received a total of $7 million in state NMTC awards and has allocated $5 million of that towards projects around Ohio totaling $83.9 million. Funds are used to develop or expand businesses and create jobs in Ohio's distressed communities.
The Ohio program, administered by the Department's Office of Redevelopment, provides a 39 percent tax credit over seven years for qualified investments. Community Development Entities that received a tax credit allocation from the Federal New Markets Tax Credit program are eligible to apply.
In its application, Finance Fund identified eight potential projects that could benefit from the Ohio New Markets Tax Credit. With the $2 million award, Finance Fund projects that up to three projects will benefit from its Ohio NMTC allocation.
Other third-round Ohio NMTC recipients include: Cincinnati New Markets Fund, LLC; Cleveland New Markets Investment Fund II, LLC; Development Fund of the Western Reserve; Northeast Ohio Development Fund, LLC, and Stonehenge Community Development, LLC.
About Finance Fund (FinanceFund.org)
In 2012, Finance Fund celebrates its 25th anniversary as a partner in community empowerment. Throughout Ohio, Finance Fund connects low-income communities with public and private sources of capital and simplifies the complexities of the financing process to help good economic development ideas come to life. Since 1987, Finance Fund and its affiliates have invested more than $195.5 million in housing, economic development, and community facility projects leveraging over $1 billion. These investments were accomplished through 2,688 awards to community-based organizations throughout the state. Partnerships enabled the development of 15,439 units of affordable housing, 16,728 direct jobs, and 3,036 early care and education classrooms for 69,497 children benefiting the lives of more than 125,000 Ohioans.
About the Office of Redevelopment (www.development.ohio.gov)
The Office of Redevelopment assists communities with place-based redevelopment, which creates wealth from personal, business, and community successes. The Office works to identify the resources and financing necessary to enhance the economic viability of local communities.
Working with our partners across business, state and local governments, academia, and the nonprofit sector, the Ohio Department of Development works to attract, create, grow, and retain businesses through competitive incentives and targeted investments. Engaged every day in marketing, innovating, investing, and collaborating, the Ohio Department of Development works to accelerate and support the teamwork that is necessary for success by providing financial, informational and technical assistance to those making an investment in Ohio's future
About the Ohio New Markets Tax Credit Program (www.development.ohio.gov/urban/ONM/)
The goals of the Ohio New Markets Tax Credit Program are to attract additional federal tax credits, encourage private investment funding to Ohio businesses and spark revitalization in Ohio's communities. The program is designed to help finance business investments in low-income communities by providing investors with state tax credits in exchange for delivering below-market-rate investment options to Ohio businesses.
SOURCE Finance Fund