Government introduces a tax credit aimed at community development in poor areas - - Tulsa, OK - News, Weather, Video and Sports - |

Government introduces a tax credit aimed at community development in poor areas

WASHINGTON (AP) _ The government aims to generate $15 billion in private investment in low-income communities through a program it began rolling out Wednesday.

As an inducement for such investment, the government will allow taxpayers - including individuals and companies - that put money into a "community development entity'' to be eligible for a new tax credit, the Treasury Department said.

The entities would use the money to support business activities in poor communities.

Treasury officials said the new tax credit may be available to investors by the fall of 2002. The credit to investors is to equal 39 percent of the cost of the investment and be claimed over a 7-year period.

A community development entity, which must be certified by the government, can be any domestic corporation or partnership that has a track record of working with or investing in poor communities. A bank, small business or even citizens group, for example, that meets eligibility requirements could be designated as a community development entity.

The so-called new markets tax credit program was part of a broader, legislative package designed to help distressed communities. That package, which won bipartisan support from Congress, was signed into law last December by President Clinton.

"We believe that this program will attract billions of private sector capital into areas of our country where disinvestments and disenchantment with the economy have too long been the norm,'' said Tony Brown, director of the Treasury Department's Community Development Financial Institutions Fund, which administers the program.
Powered by Frankly
News On 6
303 N. Boston Ave.
Tulsa, OK 74103 is proud to provide Oklahomans with timely and relevant news and information, sharing the stories, pictures and loves of Oklahomans across our great state.
All content © Copyright 2000 - 2018 KOTV. Oklahoma Traveler™ is a registered trademark of Griffin Communications. All Rights Reserved.
For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.