REI Oklahoma, a nonprofit economic development organization, announces that its wholly owned subsidiary, REI Development Corp., has secured $45 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.
“As a result of the diligence and volunteer service of our Board of Directors and advisory committee focused on the project, our organization will continue to support and sustain business growth in Oklahoma,” said Kenny Simpson, REI Oklahoma Executive Vice President. “We are equally appreciative of the congressional support of state leaders.”
REI Oklahoma is one of 87 community development organizations in the U.S. to receive a combined $3.5 billion in NMTC, which are designated to create economic development in distressed communities. The organization will target its NMTC allocation to provide flexible business financing to community-based healthcare centers, small and emerging manufacturers and other expansion-stage businesses in economically distressed locations of Oklahoma. Other areas of focus are businesses in rural areas and Native American enterprises.
“The New Markets Tax Credit program opens doors of opportunity for struggling businesses and communities in Oklahoma,” said Scott Dewald, REI Oklahoma President & CEO. “The proof that these tax credits are an effective tool for promoting economic development can be found in the success of past NMTC projects throughout our state.”
REI Oklahoma received $175 million in previous tax credit authority, resulting in projects totaling more than $485 million in economic impact and creating/retaining more than 2,600 jobs. The organization’s first allocation was received in 2003.
“This is a perfect fit for our organization because it is focused on placing resources in the areas that need it the most,’” said Martin VanMeter, REI Oklahoma board chairman. “We are honored to be a part of this program as it helps advance our mission of creating jobs and economic opportunity in Oklahoma.”
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 stands ready to help 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 and YouTube.