REI Oklahoma, a nonprofit economic development organization, announces that its wholly owned subsidiary, REI Development Corp., has secured $60 million in New Markets Tax Credit (NMTC) allocations. The tax credits are provided by the U.S. Treasury Department’s Community Development Financial Institutions Fund and provide a 39 percent federal income tax credit for investments into qualifying businesses in low income communities.
“The NMTC program delivers investment capital where it is needed the most and because of that we are proud to be part of this program.” said Kyle Hughbanks, REI Oklahoma Board Chairman. “Every New Markets Tax Credit project we complete provides economic stimulus far beyond the actual project. This program is a win-win for the impacted businesses, the surrounding areas, the supporting businesses that are created, our state and our nation.” Added Hughbanks.
In 2017, REI Oklahoma placed $40 million into the following rural projects: CMC Steel, Durant, which is the first and only producer of hot-rolled Spooled Rebar in the United States; Blue Wave Boats, Seminole, kept 126 jobs in Oklahoma and created an additional 150 jobs. Solara Surgical Center, Ada, provides critical outpatient surgical services; and First National Center, OKC, will be revitalized into a hub of community activity and breathe new life into an important piece of Oklahoma history.
The 73 community development entities (CDEs) receiving awards today were selected from a pool of 230 applicants that requested an aggregate total of $16.2 billion in tax credit allocation authority. The award recipients are headquartered in 29 different states, Guam, and the District of Columbia. It is estimated that these award recipients will make more than $685 million in New Markets Tax Credit investments in nonmetropolitan counties.
“We are honored and excited to receive a $60 million New Market Tax Credit allocation award,” said Scott Dewald, REI Oklahoma President and CEO. “This award, coupled with our other economic development programs, ensures we continue our 35 year track record of providing tools that stimulate business, create jobs, increase home ownership and expand prosperity. The New Market Tax Credit program has done exactly what it was designed to do. It has delivered much needed capital to the most economically disadvantaged areas of our state. Our focus continues to be ensuring this program reaches the rural parts of our state so those communities and areas are able to grow and thrive. Our success is a direct result of the leadership of our advisory board and volunteer board of directors, the expertise and commitment of our staff and the support of our state leaders and congressional delegation.”
REI Oklahoma received $320 million in previous tax credit authority, resulting in projects totaling more than $1 billion in economic impact and creating/retaining nearly 3,900 jobs since 2003.
Through its NMTC and business lending programs, down payment and closing cost assistance program for Oklahoma homebuyers as well as support and training for women and minority business owners, REI Oklahoma helps create business and community opportunities across Oklahoma. Learn more by visiting www.reiok.org or calling 800.658.2823. Follow REI Oklahoma on Facebook, Twitter, Instagram, LinkedIn and YouTube.