News Column

Wis. Groups Pick up $155 Million in New Markets Tax Credits

April 25, 2013

Four Wisconsin organizations have received $155 million in New Markets Tax Credits from the U.S. Treasury Department to use to revitalize low-income, distressed communities.

The allocations were part of the Treasury's announcement it would provide $3.5 billion of the credits to more than 85 groups. The recipients were chosen from a pool of 282 applicants, the Treasury said.

According to the Treasury, the Wisconsin recipients are:

-- First-Ring Industrial Redevelopment Enterprise Inc., West Allis, which invests the funds locally, received $20 million.

-- Greater Wisconsin Opportunities Fund Inc., Madison, which invests the funds statewide, received $35 million.

-- Milwaukee Economic Development Corp., Milwaukee, which invests the funds locally, received $40 million.

-- Waveland Community Development LLC, Milwaukee, which invests the funds nationally, received $60 million.

The New Markets Tax Credit Program was established by Congress in 2000 to spur investments in low-income communities. The program attracts capital by allowing those who make equity investments in specialized financial vehicles to receive a tax credit worth 39% of their investment. The credit is claimed over seven years.

The program has made 749 awards for a total of $36.5 billion since inception, the Treasury said.

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(c)2013 the Milwaukee Journal Sentinel

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Source: Copyright Milwaukee Journal Sentinel (WI) 2013