POSTED ON OCTOBER 20th, 2008
City receives $50 million in New Market Tax Credits
Tool will be used to expand small business loans, development assistance
Milwaukee Mayor Tom Barrett said today the City will expand investments in small businesses and development projects in low-income neighborhoods, thanks to the $50 million in New Markets Tax Credits allocated today to the Milwaukee Economic Development Corporation. The US Department of Treasury announced today allocations totaling $220 million for the Milwaukee area, including the Milwaukee Economic Development Corporation (MEDC) on behalf of the City of Milwaukee.
“Milwaukee has proven successful in using this powerful tool to grow minority and women-owned businesses, eliminate blight and grow opportunities in neighborhoods that need it the most,” said Mayor Tom Barrett. “I thank Senator Kohl, Congresswoman Moore and others for their help in securing these federal tax credits for Milwaukee.”
The New Markets Tax Credit Program helps bring investment into ‘new markets’ by permitting individual and corporate taxpayers to receive a credit against Federal income taxes for making qualified equity investments in designated Community Development Entities, such as MEDC. MEDC would turn around and use the funds to make investments in low-income neighborhoods to boost the local economy and tap into new markets.
This is the second time MEDC has received a New Markets Tax Credits allocation. In 2005 Mayor Barrett announced that MEDC received $18 million in tax credits, which were later used to leverage an additional $30 million in private investment in Milwaukee. MEDC received national attention for using the credits to fund as many or more projects than six of the top ten states receiving the total allocation. Using the 2005 tax credits, MEDC made low-interest loans to 30 small businesses, impacting 1,600 jobs.
“I fought hard in Congress to bring this federal program to Milwaukee, and as Mayor I’ve been proud of our ability to put this relatively unknown federal tool to use to grow jobs and build stronger neighborhoods,” said Mayor Barrett. “From growing Lena’s Foods, a minority-owned local business, to the successful business growth in the Menomonee Valley, Milwaukee has shown that we know how to maximize the use of this tool.”
Lena’s Foods, a minority-owned local grocery
store chain, assisted in its growth by MEDC
using New Market Tax Credits.
Taylor Dynamometer, built in the Valley using
New Market Tax Credits.
Barrett said the City of Milwaukee will especially focus use of its federal tax credits for projects in the 30th Street Industrial Corridor.
MEDC provides low-interest loans to businesses in partnership with banks. It also works with the City of Milwaukee to assist with environmental remediation and redevelopment of commercial and industrial properties.
Since 2004 MEDC invested more than $81 million to grow more than 390 businesses. These projects created 2,450 new full-time and 900 part-time jobs. These investments retained 17,900 full-time and 2,200 part-time jobs.
Businesses and entrepreneurs interested in growing a business in Milwaukee should visit the Department of City Development’s ‘Business Toolbox’ webpage: www.milwaukee.gov/BusinessToolbox.htm or by calling 414-286-5840.