New Markets Tax Credit event set for December 10th
By LVEDC Staff on November 26, 2013
The Lehigh Valley Economic Development Corporation is pleased to invite you to a three-part New Markets Tax Credit forum scheduled for 7:30 through noon on December 10th at the ArtsQuest Center and SteelStacks. The cost is $25. You’ll receive a concise introduction about the NMTC program, a series of unique perspectives on it, including case studies, and hear directly, from those who can provide access to this program, on how to get your project funded. John Kingsley, LVEDC vice president of economic development finance, recently answered five questions as to why you should attend.
Who should attend this event and why?
I believe a lot of people would benefit from this event. Specifically I’d say developers, commercial realtors, bankers, attorneys, certified public accountants, CED professionals, and elected officials.
Is it your experience that some bankers and developers are leaving money on the table when it comes to passing up the opportunities the New Markets Tax Credit program offers?
Assuming the project is eligible and it is in the right location, it could conceivably be argued that a developer who is making a qualified investment in the project for seven years is leaving money on the table because they could be receiving the benefit of the tax credit (assuming they need tax shelter). That said, NMTC doesn’t provide additional funding that can be made available to fill a gap in financing for a project.
I think it’s important for people to recognize this is how economic development will be incentivized. Providing investors with tax benefits for making the “right kind” requires no direct investment from governmental entities and allows the governmental unit to “verify” that they are getting the value before they are providing the benefit.
What is the amount of tax credit that could be claimed by the investor?
The total is 39 percent of the original investment amount, over a period of seven years.
What impact does the NMTC have on economic development in a community?
Since NMTC must be used in low income communities, the impact is huge. The benefit is to the investor, the business, and the community. NMTCs encourage private investment into low-income communities for commercial, retail, industrial or mixed-use real estate projects, community projects such as health centers and charter schools or housing units, which may not otherwise occur. This investment in these communities will result in increased jobs and increased tax bases for the community. This translates to improvements within these low income communities, to things like infrastructure and livability. Communities with active businesses most often effect positive change to the landscape of the community, by bringing people to these communities to work and live.
If people are interested, how do they register and when should they do it by?
Register online by using EventBrite by December 9th.
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