Senators Stabenow, Levin Announce $50 Million in Community Development Tax Credits for Wayne County

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Funds made available through the American Recovery and Reinvestment Act which passed earlier this year

May 29, 2009 -- WASHINGTON — U.S. Senators Debbie Stabenow (D-MI) and Carl Levin (D-MI) announced today that Wayne County will receive $50 million in tax credits awarded through American Recovery and Reinvestment Act (ARRA) under the New Markets Tax Credit (NMTC) Program, administered by the U.S. Department of Treasury’s Community Development Financial Institutions (CDFI) Fund. The NMTC program has attracted nearly $12 billion into communities around the country to create jobs and stimulate economic growth.

“The global credit crisis has not only hurt our economy, but has dried up the investment capital needed to turn things around,” said Stabenow. “Making $50 million in tax credits available serves as a valuable tool to spur private investment in southeastern Michigan, create jobs, and promote economic growth.”

“This federal economic recovery funding will help spur economic growth in southeast Michigan during a difficult economic stretch,” said Levin. “I am hopeful that this partnership will help Wayne County attract investment and create jobs.”

Both Senators Stabenow and Levin have long been supporters of expanding funding for the CDFI Fund, which administers the NMTC program.

Established by Congress in December 2000, the NMTC Program permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in Community Development Entities (CDEs), such as the Wayne County – Detroit Community Development Entity. The CDEs are then required to use the investment to finance development activities in the community.

Wayne County – Detroit CDE will use its $50 million in tax credits to provide low-interest rate loans and equity capital for investments made in highly distressed communities of Wayne County and parts of Washtenaw County. The CDE will finance small business-owner-occupied real estate, industrial and commercial buildings, community facilities, and mixed-use developments. For more information, please visit www.cdfifund.gov.

Source: Senators Debbie Stabenow and Carl Levin