New Markets Tax Credits News Briefs - June 2013

Saturday, June 1, 2013

Missouri’s legislature adjourned last month without passing Missouri S.B. 112, which had been referred to the House rules committee. Sponsored by Rep. Scott T. Rupp, S.B. 112 would extend the Missouri New Markets Development program for another six years. The new markets tax credit (NMTC) program is set to expire this year. In addition to extending the program, the bill would reduce the current credit cap of $25 million per fiscal year to $15 million. A copy of the bill is available at www.newmarketscredits.com.

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A Texas state NMTC program was proposed with H.B. 2061. Introduced in early March by Rep. Jim Murphy, the state program would mirror the federal program. The bill states that the amount of the credit claimed by a qualified investor may not exceed the amount of the qualified investor’s state premium tax liability for the tax year for which the credit is claimed. The bill would also cap the credit at $750 million for qualified equity investments. A copy of the bill can be viewed at www.newmarketscredits.com.

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U.S. Bancorp Community Development Corporation (USBCDC) announced several promotions in May. USBCDC promoted Kris Switzer to head of tax credit asset management, Ana da Silva to director of NMTC and historic tax credit (HTC) asset management and Bill Bayer to director of syndications and new business initiatives. Switzer will now oversee all areas of asset and risk management activities for USBCDC, including low-income housing tax credit (LIHTC), NMTC, HTC and renewable energy tax credit (RETC) asset management. Prior to this position, Switzer was director of NMTC, HTC and RETC asset management. Da Silva previously worked as a senior asset manager in the NMTC, HTC and the RETC group for three years. Bayer acted as vice president of new business initiatives for USBCDC prior to his promotion. Bayer also served as an NMTC and HTC project manager.

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The Local Initiatives Support Corporation (LISC), in partnership with Chase, will provide $14.25 million in NMTCs to Southeast Georgia Health System’s Community Care Center. The property, located in Brunswick, Ga., will be developed in two phases and will include a rehabilitated building and new construction. The former Brunswick Medical Plaza will be the site for the new center, and a four-story building will be constructed to hold medical offices. The development, part of the Altama Commercial Corridor revitalization plan, will create 50 new permanent jobs and 350 construction jobs. The center will provide services to an estimated 15,600 people annually, with many services focused on the needs of low-income residents. Nineteen percent of the population in the area lives in poverty. LISC combines corporate, government and philanthropic resources to help nonprofit community development corporations revitalize distressed neighborhoods.

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ShopRite will add a new location in Baltimore, Md. The store will be built at an abandoned site in the Howard Park neighborhood and will be owned and operated by Klein’s Family Markets. The Klein family received financing through The Reinvestment Fund, City First Bank, the U.S. Department of Health and Human Services, the NMTC program, JP Morgan Chase Bank and the Opportunity Finance Network. The store is scheduled to open in 2014.

Journal Category: 
New Markets Tax Credit