Dakotas America receives 65 million New Markets Tax Credit award
The U.S. Treasury Department’s Community Development Financial Institutions (CDFI) Fund announced that Dakotas America, LLC has been awarded a $65 million New Markets Tax Credit (NMTC) allocation to revitalize low-income and distressed communities nationwide. The award to Dakotas America was part of $3.5 billion in NMTC allocations, with Treasury providing 76 organizations with tax credit allocation authority. The Dakotas America award was one of the largest in this round and the only allocation in South Dakota.
The NMTC program attracts private-sector capital investment in low-income areas to help stimulate economic growth and create jobs. Dakotas America has already placed $190 million in NMTC allocations throughout the United States, from large agri-business developments that serve communities in both Dakotas, to greatly expanded access to dental and health care in Oregon, Michigan and Alabama, to new elementary schools on the Pine Ridge Indian Reservation.
The national scope of Dakotas America allows the organization to focus on some of the most isolated, distressed and under-served areas of the US, including remote and distressed Native American reservations, the Appalachians, mountainous rural areas of the Pacific Northwest, the distressed Deep South and the most isolated areas of the High Plains.
“Dakotas America seeks to promote job growth in areas with few opportunities and focus on starting or growing manufacturing enterprises that are rural economic engines,” said Lin VanHofwegen, Managing Director of Dakotas America. “Our priorities include community service facilities and health care and education initiatives that create immediate high quality jobs and community benefits essential for successful long-term economic sustainability.”
This is the fourth NMTC allocation award received by Dakotas America. The 76 organizations receiving awards in the newest round were selected from a pool of 263 applicants that requested approximately $19.9 billion in allocation authority. The applicant organizations are headquartered in 27 different states and the District of Columbia.
The New Markets Tax Credit Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a non-refundable tax credit against federal income taxes for making equity investments in vehicles known as Community Development Entities (CDEs). Since the program’s inception, NMTC investments are estimated to have created nearly 600,000 new jobs and supported the construction of more than 160 million square feet of retail, manufacturing and office space. As the communities benefitting from these investments develop, they become more attractive to investors, creating a ripple effect that spurs more investment.
For more information about the New Markets Tax Credit program or Dakotas America, phone 605-978-2804, e-mail firstname.lastname@example.org or go to www.dakotasamerica.com.