Leahy, Sanders, Welch: Vermont Nets $60 Million In Job-Creating Federal Tax Credits
(WEDNESDAY, February 14, 2018) — Sen. Patrick Leahy (D), Sen. Bernie Sanders (I) and Rep. Peter Welch (D) Wednesday announced that Vermont Rural Ventures will receive $60 million in federal tax credits to spur economic development projects throughout the state.
Congress established the New Markets Tax Credit (NMTC) Program in 2000 to spur private investment in economic development projects in communities with high poverty and high unemployment. Under the New Markets program, investors receive a credit against their federal income taxes in exchange for making equity investments in job-creating development projects.
Leahy, Sanders and Welch noted that this is the largest tax credit award ever received by Vermont Rural Ventures, a wholly owned subsidiary of Housing Vermont. “This is clearly a vote of confidence in Vermont Rural Ventures’ excellent track record of investing in Vermont communities,” said the delegation. Vermont Rural Ventures has received four previous NMTC awards totaling $140 million in tax credits, which were used to finance many important projects across the state. These include a significant expansion of Chroma Technology in Bellows Falls which added 28 jobs, a new facility for Laraway Youth and Family Services in Johnson, a new Community Health Center in Enosburg, a job retention and expansion project to add 100 new manufacturing jobs at GS Precision in Brattleboro and a new Community College of Vermont building in Rutland, among many others.
Leahy, Sanders and Welch successfully fought Republican efforts to kill the New Market Tax Credit Program in the recently enacted Republican tax bill, and they supported Vermont Rural Ventures’ bid for this new allocation of tax credits.
In a joint statement, Leahy, Sanders and Welch said: “This award will help create much needed jobs and build important educational and health care infrastructure in our state. We’re very pleased to support these long-term investments in Vermont communities that need it the most.”
Nancy Owens, president of Housing Vermont, said: “This new allocation of New Markets Tax Credits will allow us to continue our NMTC program that has already created $128 million in affordable capital to support the growth of 15 businesses and the creation or retention of 1,890 jobs. We appreciate the support of our congressional delegation who understands the positive impact that federal programs have on Vermont communities, businesses and families.”