$50 Million in New Market Tax Credits Available1/16/2009
Parts of Iowa City, Coralville, and Johnson County Qualify
The Iowa City Area Development (ICAD) Group and Priority One of Cedar Rapids recently hosted a presentation by Iowa Business Growth (IBG) on New Market Tax Credits (NMTC) currently available to both ends of the Cedar Rapids/Iowa City Technology Corridor. The NMTC Program attracts private-sector capital investment into the nation’s urban and rural areas to help stimulate economic growth and create jobs.
IBG received $50 million dollars in allocation credits when the US Treasury made its allocations in October 2008.
According to Joe Raso, ICAD Group President, the development goals of IBG fit very well with ICAD’s mission of enhancing the quality of its member communities. “IBG is looking for significant projects ($5 million dollars or more) that will create valuable jobs and enhance the quality of life in Iowa,” said Raso.
In order for a project to qualify, it must first be located in a qualifying census tract. Downtown Iowa City, downtown Cedar Rapids, parts of Coralville and southwest Johnson County are all eligible.
“Based on location, many developers and business owners in our area now have access to capital and financial benefits,” added Raso. “IBG’s presentation included an example of a project which secured a $10 million dollar loan, but, using new market tax credits, only had to repay $7.5 million.”
Mark Nolte, ICAD Group Business Development Director, and Raso are available to review potential projects and provide a program overview to businesses or developers who are interested in the NMTC Program. Qualifying projects include construction and rehabilitation projects, building acquisition, equipment purchase, operating and maintenance expenses, site development and working capital.
The NMTC Program was established by Congress in December 2000. This year 70 organizations were selected to receive $3.5 billion in tax allocation credits.