REI Oklahoma, a nonprofit economic development organization, announces that its wholly owned subsidiary, REI Development Corp., has secured $35 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.
“With each NMTC project that’s been created in Oklahoma, the positive impacts have reached past the door of the recipient in the form of healthier neighboring businesses,” said Gary Sherrer, REI Oklahoma Board Chairman. “And that is what economic development is all about.”
Of 263 total applications nationwide, REI Oklahoma is one of 76 community development organizations in the U.S. to receive a combined $3.5 billion in NMTC, which are designated to create economic development in low-income areas. The organization will deploy the funds to provide flexible business financing to community-based healthcare centers, small and emerging manufacturers and other expansion-stage businesses in Oklahoma. Other areas of focus are businesses in rural areas and Native American enterprises.
“NMTC projects in Oklahoma have been instrumental in helping grow our state’s economy in our most distressed communities.” said Scott Dewald, REI Oklahoma President and CEO. “We are grateful for the collaborative work among our volunteer board of directors, staff and the congressional support of state leaders to make this allocation possible.”
A trailblazer in putting this program to work for the state, REI Oklahoma received $220 million in previous tax credit authority, resulting in projects totaling more than $507 million in economic impact and creating/retaining more than 3,000 jobs since 2003.