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New Markets Tax Credits News Briefs - December 2016

The Iowa Economic Development Authority (IEDA) board approved assistance Oct. 21 for planned or proposed projects in Sioux City, Urbandale, Durant, Templeton, Holstein and Le Mars. These awards are expected to assist in the creation of 198 jobs and to result in $93 million in new capital investment for the state. Beth Bruening PC. plans to construct a new office building in Sioux City that will serve as its primary location. The board awarded Bruening Eye Specialists tax benefits through the Targeted Jobs Withholding Tax Credit program. This project represents a $1.6 million capital investment and is expected to create 13 jobs. Energy Control Technologies plans to expand its Urbandale facility and was approved for $37,500 in direct financial assistance through the High Quality Jobs program (HQJP). This is a $15,000 capital investment project and is expected to create 10 jobs. Schumacher Company LC received assistance for an expansion project in Durant which includes consolidating its Iowa operations in Durant, new building construction and purchasing additional equipment. The board approved $50,000 in direct financial assistance as well as tax benefits through the HQJP. This is a $4.6 million capital investment, which is expected to create seven jobs. Templeton Rye Spirits LLC will move and expand both its distilling facility and workforces to Templeton. The board awarded the company tax benefits through the HQJP. This $26 million capital investment is expected to create 27 jobs. VTI Architectural Products Inc. proposes a $21 million capital investment project that would expand the current Holstein location to accommodate increased production and allow for relocation of existing offices. The company received tax benefits from HQJP, which is expected to create 60 jobs. Wells Enterprises Inc. proposes an upgrade and modernization project at the existing facility located in Le Mars. The $40 million capital investment will include the addition of new production lines as well as significant investments and various improvements to the manufacturing facilities. The company was awarded tax benefits from HQJP for this project, which is expected to create 81 jobs.

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Corporation for Supportive Housing (CSH), a community development organization, announced an $11 million new markets tax credit (NMTC) allocation  Oct. 5 to NewCourtland for the construction of a 15,000-square-foot facility in Philadelphia. The NewCourtland Life Center will be built in the former St. Bartholomew Catholic School and will be used for NewCourtland’s Living Independently for Elders (LIFE) program, which will provide medical services, adult day care and other services for low-income seniors. There will be 42 one-bedroom apartments with a preference for seniors in the LIFE program. An additional 101 apartments are planned for two subsequent phases. The facility is expected to open next year, with development costs to total $12.6 million.

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The Community Development Financial Institutions (CDFI) Fund announced Sept. 23 the winners of the 2016 CDFI Prize Competition. Eight organizations will receive a total of $1 million to reward innovative approaches to increasing investment in underserved rural areas, particularly those characterized by persistent poverty. From the 60 applications submitted for consideration, four winners were selected and an additional four applications received honorable mentions. Awards ranged from $25,000 to $300,000.

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The Littleton Food Cooperative announced Oct. 5 that it received financing for its planned expansion. Mascoma Community Development, a community development entity (CDE) established by Mascoma Savings Bank, will allocate $6.8 million in NMTCs to support the $6.9 million expansion. The cooperative is planning to expand its 13,500-square-foot footprint by 9,500 square feet, with 5,800 square feet of retail and café space and an additional 3,700 square feet of storage and work space. Twelve permanent new full-time positions and 18 part-time positions are expected to be created once the addition is completed in spring 2017. 

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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