WASHINGTON - February 24, 2011 - Senator Chuck Grassley today said that the Iowa Community Development LC will receive a $35 million tax credit allocation under the Treasury Department`s New Markets Tax Credit Program.
The Iowa Community Development LC will use the 2010 New Markets Tax Credit allocation to offer financing with below-market interest rate and flexible terms to support and incentivize businesses to locate or expand in Iowa.
"This allocation will help encourage investment and spur economic activity in Iowa," Grassley said.
The Treasury Department selects firms to receive an allocation of tax credits through the New Markets Tax Credit Program. This program permits taxpayers to receive a credit against federal income taxes for making qualified equity investments in designated community development entities. Substantially all of the qualified equity investments must be used to provide investments in low-income communities.
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