Just over 100 Days since the American Recovery and Reinvestment Act became law, Congressman Jim Himes (CT-4) today announced an $85 million tax credit for GE Capital through the New Market Tax Credit (NMTC) Program. The credits will allow the Norwalk-based company to invest and attract capital to make loans to businesses within distressed communities. The company plans to focus their efforts in the areas of sustainable forest products and renewable energy projects across the country.
With resources made possible through the Recovery Act, the NMTC Program injects private-sector capital investment into communities to create jobs, stimulate economic growth, and jumpstart the lending necessary for financial stability.
"Making credit available to businesses throughout the country is a critical piece of getting our economy moving again," said Congressman Himes. "This tax credit will help GE keep and create financial services jobs in Norwalk while doing important work to help businesses throughout the country thrive."
The NMTC Program permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in investment vehicles known as Community Development Entities (CDEs). A majority of the taxpayer's investment must, in turn, be used by the CDE to make qualified investments in low-income communities.
"We're very pleased to be chosen to participate in this program," said Tom Quindlen, CEO, GE Capital, Corporate Finance. "These tax credits are a key enabler for financing businesses in economically depressed, rural areas that will add jobs and provide other support to the local community."
To date, close to $12 billion of private-sector capital has been invested through the NMTC Program into urban and rural communities throughout the country. Data reported through 2007 shows that $9 billion dollars of NMTC capital has been invested into approximately 2,000 businesses and real estate developments - helping to develop or rehabilitate over 68 million square feet of real estate, create 210,000 construction jobs, and create or maintain 45,000 full time equivalent jobs at businesses in low-income communities.
Additional information on the NMTC Program can be found on the CDFI Fund's web site at: www.cdfifund.gov.