February 24, 2011

$46 Million for Economic Development in Low-Income Communities in N.M.

WASHINGTON - U.S. Senator Tom Udall (D-NM) today announced that Finance New Mexico will receive $46 million to support job creation and investments from the private-sector in economically distressed communities across the state.

The $46 million comes through the New Markets Tax Credit (NMTC) program under the U.S. Department of the Treasury's Community Development Financial Institutions Fund. The NMTC is an important tool in economic recovery that supports job creation and small business growth in the struggling communities.

"Economic development in our low-income communities relies heavily on important investments from the private-sector to foster job growth. In an economy that is still recovering, this funding will help to encourage additional investments to help companies that are located in New Mexico or plan to expand there," Udall said.

Through these credits, Finance New Mexico will spur growth in distressed communities by catalyzing private-sector investments that will help create jobs at operating businesses, in construction and through various real estate projects.

Created by Congress in 2000, the New Markets Tax Credit (NMTC) is an incentive to encourage private capital investment in low-income communities. NMTCs are allocated by a bureau within the United States Department of the Treasury and reduce the tax liability of investors who make qualified equity investments over a seven-year period. To date, the NMTC has brought over $20 billion of private-sector capital to urban and rural communities throughout the country.

Finance New Mexico is a partnership of public and private entities with the goal of increasing economic development. For more information about Finance New Mexico, please visit their website: http://www.financenewmexico.org. For additional background on NMTCs please visit: http://www.cdfifund.gov/what_we_do/programs_id.asp?programid=5