WICKER, HYDE-SMITH APPLAUD $185 MILLION IN TAX CREDITS TO PROMOTE JOBS IN DISTRESSED COMMUNITIES
Four Miss. Institutions Guaranteed New Market Tax Credit Program Resources
WASHINGTON, D.C. – U.S. Senators Roger Wicker (R-Miss.) and Cindy Hyde-Smith (R-Miss.), members of the Senate Community Development Finance Caucus, today applauded the award of $185 million in New Market Tax Credits (NMTC) to four Mississippi-based institutions that will use it as leverage to support economic growth in underserved areas.
Two community development entities (CDEs) in Jackson, one in Ridgeland, and another in Mendenhall are receiving support from the NMTC investment incentive program to spur greater private investment in distressed communities.
“Community development is essential to economic growth. These tax credits will give several Mississippi institutions the resources they need to stimulate investment, create jobs, and boost the local economy. It is a testament to the strength of the CDFI program that for every dollar invested communities can expect an average of eight dollars of private investment in return,” Wicker said.
“New Market Tax Credits are used in Mississippi not only to help finance new development, but also to help existing businesses grow. This is important as the challenge to improve opportunities in underserved communities continues,” said Hyde-Smith, ranking member of the Senate Financial Services and General Government Appropriations Subcommittee.
Mississippi CDEs receiving NMTC from the 2021 calendar year CDFI fund include:
• Cadence Community Capital, LLC, Ridgeland – $60.0 million
• PB Community Impact Fund, LLC, Mendenhall – $60.0 million
• Hope Enterprise Corp., Jackson – $45.0 million
• MuniStrategies, LLC, Jackson – $20.0 million
NMTC is operated through the U.S. Treasury’s Community Development Financial Institutions (CDFI) Fund. Historically, NMTC Program awards have generated $8 of private investment for every $1 invested by the federal government.
Wicker and Hyde-Smith have consistently pressed Treasury officials to ensure that greater consideration be given to the needs of Mississippi communities when deciding future allocations under the NMTC Program.
Additionally, the Senators have cosponsored legislation to build on CDFI programs, including the Rural Jobs Act (S.1671) to designate NMTC Rural Job Zones and the Community Development Investment Tax Credit Act (S.4418) to create a new tax credit for private investments in qualified CDFIs.