The Department of Treasury has just announced that Heartland Renaissance Fund has been selected by the CDFI Fund to receive an allocation of $60 million New Market Tax Credits. This will be Heartland’s fourth NMTC allocation bringing its total NMTC allocations to $200 million. The announcement from the Department of Treasury can be viewed here. U.S. Department of Treasury Deputy Secretary Neal Wolin today announced that Heartland Renaissance Fund LLC has been selected by the Community Development Financial Institutions Fund (CDFI Fund) to receive an allocation of $60 million through the New Markets Tax Credit Program (NMTC). Today’s announcement will make Heartland Renaissance Fund’s fourth NMTC allocation, bringing its total NMTC allocations to $200 million. Department of the Treasury’s CDFI Fund named 70 organizations as recipients of the $3.6 billion in tax credits for use in low-income communities under the 2011 round of the NMTC Program. C. Sam Walls, Chairman of Heartland Renaissance Fund, commented,
“We are extremely pleased to have been successful in acquiring New Market Tax Credits to finance projects that result in job creation, enhanced community services, and more access to health care and education. Achieving an award of these credits is not easy as it is a highly competitive process and our success is a testament to the quality of the work of all who are associated with this project. We are eager to employ these credits in a manner which is most beneficial to our state and, as in the past, we look forward to working with our partners to achieve these goals.”
Walls applauded the dedicated efforts of the Arkansas Congressional delegation. “We appreciate the hard work they put forward in helping us secure this allocation.” Arkansas Senator Mark Pryor also lauded the economic impacts of the NMTCs in Arkansas:
“Heartland Renaissance has helped launch a number of promising economic and educational projects, making a real difference in Arkansas communities,” Pryor said. “I was proud to support their application for additional new market tax credits, and I look forward to the new jobs and expanded opportunities that will result from this award.”
Second Congressional District Congressman Tim Griffin said his office was excited to learn that Heartland Renaissance Fund received the allocation. “Their efforts will not only lead to increased opportunity for Arkansans, it also will help lay the groundwork for even stronger communities around our state.” The NMTC Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in investment vehicles known as Community Development Entities (CDEs) such as Heartland Renaissance Fund. The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. Substantially all of the taxpayer’s investment must in turn be used by the CDE to make qualified investments. The 70 organizations were selected through a competitive application and rigorous review process.