WASHINGTON – Sen. Chuck Grassley today praised the decision of Northwest Airlines to open a corporate reservations center in Sioux City that will create a projected 330 jobs. The project is using a tax credit program that Grassley strongly supports as a way to revitalize urban and rural communities throughout Iowa.
"This will be a great fit for both Sioux City and Northwest Airlines. Siouxland has done a lot of work to pull itself up from the rocky economic times of the past," Grassley said. "I think they'll enjoy a long and successful relationship."
Sioux City officials said the Northwest Airlines project received a “major boost” with the commitment of an allocation of new market tax credits from the Iowa Business Growth Company, located in Johnston, Iowa. The tax credits will provide nearly $2 million in funds for the project.
"Sioux City has an outstanding workforce that will benefit greatly from the good jobs that are being created through the New Markets Tax Credit Program, Northwest, and Sioux City," Grassley said.
The federal Treasury Department chooses firms to receive an allocation of tax credits through the New Markets Tax Credit Program. This program permits taxpayers to receive a credit against federal income taxes for making qualified equity investments in designated community development entities. Substantially all of the qualified equity investments must be used to provide investments in communities working to rejuvenate their economic base.
Grassley is ranking member and immediate past chairman of the Committee on Finance, with jurisdiction over tax policy. He has worked to make the tax credit more widely available to states such as Iowa through legislative reforms to the program and by writing to the Treasury Department, urging consideration of Iowa applicants for New Markets Tax Credit allocations, in accordance with all applicable rules, regulations, and guidelines.
“The new markets tax credit program helps Iowans help their fellow Iowans,” Grassley said. “Sometimes a community needs a boost seeking investment. When that boost happens, it can get the ball rolling and attract more investment. Pretty soon the whole community is revitalized.”