Posted on May 11, 2005
WASHINGTON – U.S. Senators Bill Frist (R-TN) and Lamar Alexander (R-TN) today applauded the U.S. Department of Treasury for awarding $17 million in New Market Tax Credits to the Appalachian Fund for Growth II, LLC in Chattanooga under the Treasury Department's Community Development Financial Institutions (CDFI) Fund - New Market Tax Credit program. “Senator Alexander and I thank the U.S. Department of the Treasury for providing these valuable tax-credits to support community development efforts in Chattanooga,” said Frist. “These policies will promote investment in Tennessee’s communities and are vital to long-term economic growth and stability. When the federal government empowers businesses to expand and create jobs, the American dream can become a reality for all of our citizens.” “I appreciate the Department of Treasury’s support of economic development in Southeast Tennessee,” said Alexander. “This funding will help energize economic activity, keep jobs in the area and create new, good-paying jobs. I will continue to work with Senator Frist to support programs that promote economic growth and prosperity in Tennessee." The New Markets Tax Credit (NMTC) Program allows taxpayers to receive a credit against federal income taxes for making qualified investments in designated Community Development Entities (CDEs). All of the qualified investments must be used by the CDE to provide further investments in low-income communities. The NMTC allocation is used to help attract new businesses to under-served service areas by offering creative financing, supplying creative financing for businesses to rehabilitate existing properties, facilitating community development and leveraging other private investment into its targeted communities. The CDFI Fund received applications from 208 entities requesting the authority to issue to their investors the aggregate amount of $22.9 billion in equity as to which NMTCs may be claimed. The CDFI Fund has awarded 41 organizations an aggregate total of $2 billion in NMTC allocation authority.