Portland Community Bank to Receive $10 Million in New Markets Tax Credits from Recovery Act

Portland Community Bank to Receive $10 Million in New Markets Tax Credits from Recovery Act

Washington D.C. – Senators Jeff Merkley and Ron Wyden announced Wednesday that Albina Equity Fund in Portland is receiving $10 million in New Markets Tax Credits as part of the American Recovery and Reinvestment Act.  These tax credits will help create jobs and spur economic growth by allowing Albina to provide capital for commercial and retail development in low-income communities.

The tax credits awarded to Albina are part of $1.5 billion in New Markets Tax Credits being distributed as a result of the Recovery Act. The New Markets Tax Credit Program , which was established by Congress in December 2000, enables taxpayers to receive federal income tax credits for investing in Community Development Entities, which make qualified investments in low-income communities.

“The tax credits going to Albina will help some of the Oregon communities that have been hardest hit by the economic crisis,” said Senator Merkley.  “The way we are going to move our communities out of this economic crisis is by supporting business development that will provide well-paying jobs for years to come.”

“This $10 million in tax credits can put people to work quickly on projects from downtown Portland to rural Lake County,” Wyden said. “The immediate employment benefit in construction will be followed by long-term, sustainable, family-wage jobs.”  

The capital provided by Albina will be more than 50 percent below market cost for comparable financing, make capital available to businesses that currently do not have access to capital, and leverage state and local economic development and private loan funds by filling financing gaps with subordinate financing on flexible terms. The rural projects will also provide capital for renewable energy facilities and businesses that create low-cost heating, energy and jobs for rural communities in deep economic distress.

A full list of New Markets Tax Credit recipients nationwide can be found at http://www.cdfifund.gov/.