MADISON and JACKSON — U.S. Sen. Thad Cochran (R-Miss.) is welcoming New Markets Tax Credit (NMTC) program allocation awards that will allow two Mississippi organizations to leverage $81 million in tax credit authority into greater private-sector investment for economic and community development in low-income areas of the state.
The U.S. Treasury Department Feb. 24 announced 2010 NMTC allocations of $53 million to SECDE Ventures, LLC, in Madison and $28 million for MuniStrategies, LLC, in Jackson. These tax credit allocations, part of $3.5 billion announced nationwide, are provided through the Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund).
SECED Ventures will focus on “equity and debt product offerings to high-impact, job-creating developments, such as manufacturing, healthcare facilities and major commercial developments that demonstrate the ability to generate sustainable long-term employments,” according to CDFI Fund.
MuniStrategies will use its allocation to offer “below-market rate, subordinated capital with much longer amortization periods to operating businesses, rural ‘green’ renewable energy companies, and mixed-use facilities in low-income communities throughout Mississippi.”
This allocations awarded by the CDFI Fund to CDEs in Mississippi since the program was created through the Community Renewal Tax Relief Act of 2000. As of Dec. 2009, 15 different CDEs have invested $276 million in 60 projects in 23 different Mississippi communities.