Kosmas Introduces "Central Florida Reinvestment Plan"

Press Release

Kosmas Introduces "Central Florida Reinvestment Plan"

Today, Congresswoman Suzanne Kosmas (FL-24) introduced her "Central Florida Reinvestment Plan," two bills that will create tax incentives to spur private investments in distressed communities with the goal of increasing economic development and job growth.

Numerous Central Florida communities are suffering from job losses, high foreclosure rates, and other economic distress. Kosmas' plan would increase investment in these communities by providing a capital gains tax waiver for long-term investment in residential and commercial properties that are held for at least five years and by expanding eligibility for organizations to qualify for investments under the popular New Market Tax Credit program.

"There are many signs that the economy is on the right track, but unemployment remains high and we need to take additional steps to make sure we keep moving in the right direction," said Congresswoman Kosmas. "Encouraging long-term private sector investment is critical for job growth and economic stability, and my ‘Central Florida Reinvestment Plan' will provide tax incentives to bring businesses and investors back to Central Florida communities."

A county would qualify as a distressed community under Kosmas' legislation if it is suffering from higher than average unemployment or foreclosure rates or if it is experiencing a marked decline in home values. Communities hit by federally declared natural disasters within two years before or after the bills' enactment would also be included.

Additional info on the bills included in Kosmas' "Central Florida Reinvestment Plan" can be found below:

Distressed Community Reinvestment Act -- waives capital gains taxes on the sale of residential and commercial property in a distressed community if the investment is made within two years following enactment of the bill and held for at least five years. This bill will encourage investments in residential property to increase home values by alleviating foreclosure rates and in commercial property to attract new job-creating businesses. These investments will also boost local economies through increased construction and property improvements.

New Markets Tax Credit Expansion Act -- expands eligibility for organizations to qualify for long-term investments under the popular New Market Tax Credit (NMTC) program. The NMTC program permits taxpayers to receive a Federal income tax credit of up to 39% for making qualified equity investments in designated Community Development Entities (CDEs) and maintaining the investment for at least seven years. CDEs then utilize these investments to promote long-term economic development and to encourage the creation of new businesses.

Currently, organizations can only receive CDE designation if they serve low-income communities. Under Kosmas' legislation, for a two-year period following enactment, community investment organizations working in distressed communities, regardless of income levels, would also be eligible for CDE designation. Current CDEs would also be able to use NMTC investments for initiatives in distressed communities that are not necessarily low-income.

For more information on the NMTC program, please visit: http://www.cdfifund.gov/what_we_do/programs_id.asp?programID=5

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