NCB Hosts New Market Tax Credit Seminar in Alaska
Speakers Discuss Benefits & Qualification Requirements for Regional Businesses
Anchorage, AK – July 20, 2010 – NCB, a leading financial services company, recently sponsored a New Markets Tax Credit Educational Session in Anchorage, Alaska. The two-day event was held at The Hotel Captain Cook where speakers Matt Wright of NCB, Gregory Doran of Nixon Peabody, LLP and Don Nimey of Reznick Group addressed local real estate developers, senior executives of Alaska Native Corporations, and other community leaders on the benefits and requirements of the federal program.
The New Markets Tax Credit Program (NMTC) provides private-sector investment in our nation's communities, helping to stimulate economic growth, create jobs and bring new opportunities to Americans most in need.
The event speakers provided attendees with an overview on the NMTC Program that permits taxpayers to receive a 39 percent credit of the investment against Federal income taxes for making qualified equity investments in designated Community Development Entities (CDEs) over a seven-year credit allowance period. Other discussion topics included how substantially all of the investment equity must be used by the CDE to provide investments in low-income and or rural communities, the qualifications for the program, how the tax credits are deployed, and the varying structures. The presentation concluded with a case study on a NMTC deal in North Carolina.
“We see a great deal of potential for New Markets Tax Credits in communities throughout Alaska,” said Earl Carson, Vice President of NCB Alaska. “The sessions were very well received by the attendees, as they clearly demonstrated the ability of the NMTC program to successfully bring much needed dollars to targeted low income and rural areas, at below market interest rates.”
Since the inception of the NMTC program, NCB has worked with its customers to arrange over $80 million as a leverage lender. NCB Capital Impact, the bank’s nonprofit affiliate has been awarded over $400 million in new market tax credit allocations through the Community Development Financial Institutions Fund.
NCB is dedicated to strengthening communities nationwide through the delivery of banking and financial services, complemented by a special focus on cooperative expansion and economic development. Headquartered in Washington, DC, the Bank has offices in Alaska, California, New York, Ohio and Virginia. To learn more, visit www.ncb.coop, NCB Financial Group on Facebook, or on Twitter at coopbanking.
NCB Financial Group (NCB) consists of National Consumer Cooperative Bank, a federally chartered cooperative corporation; its wholly-owned subsidiary NCB, FSB, a federally chartered savings bank; and, NCB Capital Impact, a 501(c)3 nonprofit affiliate. Loans and other financial services are provided by NCB, FSB and NCB Capital Impact. Deposit products and services are provided by NCB, FSB, which is a member FDIC. Each is a separate corporation within the NCB Financial Group.
About New Markets Tax Credits:
The New Markets Tax Credit Program promotes social investment in underserved communities by permitting taxpayers to receive a credit against federal income taxes for making qualified equity investments in community development entities. To date, the Fund has made 495 awards totaling $26 billion in allocation authority.