WHEDA to receive $75 million in latest round of New Markets Tax Credits.
November 16, 2016
The Wisconsin Housing and Economic Development Authority (WHEDA), through its Community Development Entity, the Greater Wisconsin Opportunities Fund, Inc. (GWOF), is the recipient of $75 million in New Markets Tax Credits (NMTCs) by the U.S. Department of the Treasury. GWOF is a coalition of seven Community Development Financial Institutions (CDFIs) and WHEDA.
The tax credits are a resource to help fuel job creation and economic development efforts by promoting equity investment in low-income urban and rural communities. WHEDA allocates NMTCs to enhance financing for projects in highly distressed areas throughout Wisconsin that have demonstrable community impact.
“WHEDA is delighted to announce this terrific news that will create jobs and generate economic activity throughout Wisconsin,” said WHEDA Executive Director Wyman Winston. “Prior to this round, the $500 million in New Markets Tax Credits WHEDA and its partners won since 2004 created and/or retained thousands of jobs in local communities. Tax credit recipients have included manufacturers, small technology firms, central city shopping centers, commercial real estate developments, retail stores, hotels, and health care facilities. Tax credit investments have positive and immediate effects on communities. Wisconsin’s economy will benefit from this exciting news.”
Winston said receiving the tax credits will be extremely helpful to Milwaukee.
“As was the case in previous years when WHEDA attained tax credits, a good portion of the tax credits will once again be used to invest in projects in the Transform Milwaukee area to continue our strong commitment to revitalizing Wisconsin’s first-class city,” Winston added.
Transform Milwaukee is a public- private partnership focusing on restoring economic prosperity to five major industrial cores of the city of Milwaukee including Riverworks, the 30th Street Industrial Corridor, Menomonee Valley, Harbor District, and Aerotropolis, including General Mitchell International Airport.
The NMTC program, originated by Congress in 2000, provides individual and corporate tax incentives to investors who make equity investments in Community Development Entities, such as GWOF, which invest in rural and urban low-income communities. Businesses involved in NMTC deals can obtain benefits including lower interest rates on loans, interest-only payments for seven years, non-traditional financing not available in the marketplace and access to a reduced cost of capital. Communities benefit from jobs created through investments as well as greater access to public facilities, goods, and services.
The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced that 120 organizations nationwide will receive a total of $7 billion in New Markets Tax Credit awards. This is the largest single award round since the New Markets Tax Credit Program was created in 2001.
GWOF is composed of the following entities: Cap Services of Stevens Point, Forward Community Investments, Impact Seven, Legacy Redevelopment Corporation, First American Capital Corporation, the Northwest Side Community Development Corporation, the Wisconsin Women’s Business Initiative Corporation, and WHEDA.
WHEDA is an independent state authority that works with lenders to provide low-cost financing for housing and small business development in Wisconsin. For more information on WHEDA programs, visit www.wheda.com or call 1-800-334-6873.