Pelosi Announces Tax Credit to Encourage Investment in Low-Income Communities
Washington, D.C. – Speaker Nancy Pelosi announced today that the Department of the Treasury’s New Markets Tax Credit (NMTC) Program will provide $71 million in tax credits to organizations based in San Francisco that make qualified investments supporting business activities in low-income communities.
“This allocation of funding is a significant victory for San Francisco and for cities and communities across the nation. Funding will be used to encourage investment in community centers, child care facilities, after-school programs, health clinics, homeownership programs, and services for seniors.
“The Low Income Investment Fund and the Northern California Community Loan Fund are models of excellence in creating opportunities in low-income communities. These organizations have demonstrated the transformative power of investment motivated by concern for community. By making more resources available at lower rates, they have transformed communities and improved lives of countless individuals and families across the San Francisco Bay Area and the country.
“I have long supported the New Markets Tax Credit Program as a way to encourage investment in our communities. I will continue to support the Treasury’s program as well as these organizations so that deserving organizations in low-income communities receive the funding they so desperately need.”
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The NMTC Program, established by Congress in December 2000, provides individual and corporate taxpayers with a credit against federal income taxes for making qualified equity investments in investment vehicles known as Community Development Entities (CDEs). Substantially all of the taxpayer’s investment must be used by the CDE to make qualified investments supporting certain business activities in low-income communities.Source: Office of the Speaker of the House