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Treasury Dept. Awarding $2B in Tax Credits
Wednesday May 11, 6:44 pm ET
By Martin Crutsinger, AP Economics Writer
Treasury Department Awarding $2 Billion in Tax Credits to 41 Organizations for Projects


WASHINGTON (AP) -- The Treasury Department announced Wednesday it was awarding $2 billion in tax credits to 41 organizations for projects designed to bolster economic development in poor areas.
The awards were made under a program that reduces tax liabilities for investors who are willing to support development projects in distressed areas.

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The 41 award recipients come from 20 states and the District of Columbia. Proposals cover projects in at least 33 states.

One of the winners was Ecotrust, a nonprofit corporation in Portland, Ore. The tax credit will promote restoration of Pacific Northwest forests and stimulate investment in low-income communities in the region.

"This is great news for rural communities across the Pacific Northwest," said Spencer B. Beebe, Ecotrust's president. "We are creating a future where living-wage jobs and forest health go hand in hand."

The government program created by Congress in 2000 is intended to permit individual and corporate taxpayers to receive a credit against their federal income taxes for making qualified investments in community development projects.

The credit provided to the investor totals 39 percent of the cost of the investment and can be claimed over seven years. The recipients announced Wednesday marked the third round of tax credits that have been awarded since the program began.

The program "is doing what it is supposed to do -- attracting sources of capital to our nation's low-income communities," said Art Garcia, who helps administer the program at the Treasury Department.

Treasury program: http://www.cdfifund.gov





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