Nonprofit forms to get federal funds, tax credits for new hospital
Published: July 24,2012
PHILADELPHIA — A nonprofit organization has been formed to obtain federal funding and tax credits for about a third of the cost of the new $19 million Neshoba County Hospital now under construction.
Officials tell the Neshoba Democrat the governments and for-profit entities do not qualify for the federal funding being sought by the Neshoba County Hospital Public Improvement Corp.
“The sole purpose of getting funding through the New Market Tax Credit program is to obtain up to $5.4 million for the project,” said board of supervisors’ attorney Wade White.
“Under the New Market program, the hospital pays interest and fees on the funds obtained for a seven-year period. After that time, the debt will be forgiven. The net benefit is approximately $4 million in free money.”
The remainder of the hospital project will be funded with a $4 million loan from the Mississippi Development Authority and cash reserves from the hospital.
The New Markets Tax Credit Program was established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities.
The new hospital includes a new two-story, 52,000 square foot building adjacent to the existing emergency department.
The new facility will house a new emergency room, a four-bed intensive care unit, 25 state-of-the-art patient rooms, a new radiology department, new surgery suite and a new pharmacy.
The project is expected to be completed in spring of 2013.
To sign up for Mississippi Business Daily Updates, click here.
FOLLOW THE MBJ ON TWITTERMy Tweets
Twang & Tourism: The Country Music Trail
Top Posts & Pages
- Venture Tech merges with ISC, acquires SAT
- PSC's Brandon Presley calls in-state nuclear waste dump a 'harebrained scheme'
- Georgia-Pacific completes acquisition of SPG Holdings
- Corps official: River needs larger ports, locks and dams
- Community Bank names new officers
- Officials set hunting dates for birds; expands dove season by 20 days
- Retired judge to hear McDaniel's challenge of primary loss to Cochran
- C Spire, UM installing Wi-Fi network at Vaught-Hemingway Stadium
- Southern Bancorp to acquire Bank of Bolivar County