WASHINGTON — Sen. Chuck Grassley today announced that two community development entities in Iowa will receive a total of $105 million in tax credits designed to spur private investment and new business activity.
Grassley said it was a victory to have these federal tax credits directed to Rural Development Partners ($60 million) and Iowa Community Development ($45 million) because the program had been neglecting rural America in favor of low-income urban communities.
“I’ve been putting pressure on the Treasury Department by offering legislation, sending letters, and asking questions of nominees to high-level Treasury posts. Some of these program resources needed to be directed to rural America,” Grassley said. “Today that work paid off with $105 million in tax credits for Iowa, along with other rural states. Creating this kind of private-sector investment in Iowa cities and towns is key to a robust and revitalized economy at the grassroots.”
The Iowa entities selected for these federal tax credits target disadvantaged businesses and communities throughout Iowa.
“Rural Development Partners is privileged to serve the needs of America's rural low-income communities,” said Brad Petersburg, Managing Director, Rural Development Partners. “This New Markets Tax Credit allocation will serve as a vital tool that can be utilized to help attract capital for the development of value-added agribusinesses that will create new jobs, additional sources of income, and added value for agricultural outputs, thereby improving the economic well-being of our most underprivileged rural citizens. We deeply appreciate the confidence that the Community Development Financial Institution Fund has expressed in our ongoing ability to deploy NMTC allocations. We also want to thank all of those who have supported our vision and mission since our inception in 2003, with special gratitude to Senator Grassley, who has been a strong sponsor and advocate of the NMTC program for the benefit of rural America.”
“This award of $45 million in New Market Tax Credits will go a long way to revitalize Iowa’s economy with new jobs and growth in underserved areas,” said John Rigler, Chairman, Iowa Community Development, LLC. “Senator Grassley’s assistance and attention in seeing that Iowa receive these resources is very much appreciated by Iowa Community Development, LLC.”
Grassley said the New Market Tax Credits were created by Congress in 2000 with the idea that a federal tax credit would provide an attractive incentive to increase the flow of investment capital to certain areas. The Treasury Department administers the program. Grassley is Chairman of the U.S. Senate Committee on Finance, which is oversees the Treasury Department.