WASHINGTON, D.C. – U.S. Senator Olympia J. Snowe (R-Maine) today delivered remarks at a celebration at the Gulf of Maine Research Institute in Portland to mark the success of the New Markets Tax Credits Program, including the nearly $200 million of New Markets funds that have been utilized by Maine’s own Coastal Enterprises. Senator Snowe joined Kimberly Reed, Director of the U.S. Treasury Community Development Finance Institution fund and Governor John Baldacci in praising the success of the NMTC program in helping to revitalize low-income and rural communities in
Earlier this year, Senator Snowe joined her Senate Finance Committee colleague, Senator Jay Rockefeller (D-WV) in introducing the New Markets Tax Credit Extension Act of 2007, which would extend the New Markets Tax Credit Program (NMTC) for five years through 2013, adjusted for inflation. The NMTC has a longstanding history of promoting investment and economic growth opportunities in low-income, rural communities. Last year, Senators Snowe and Rockefeller were successful in securing a one-year extension for the program through 2008.
The New Markets Tax Credit Program – which was enacted in December 2000 -- offers a seven-year, 39 percent Federal tax credit made through investment vehicles known as Community Development Entities. These CDEs -- like Coastal Enterprises -- combine private investment dollars with capital raised through the tax incentive to make loans to or investments in businesses in low-income communities.
The event highlights the $249 million of investment capacity that Coastal Enterprises, Inc (
Included are excerpts from Senator Snowe’s remarks prepared for delivery:
It’s entirely appropriate we gather at this venue this morning to highlight the fruits of this critical mechanism for vital investment, and this invaluable economic development program so well utilized by
Indeed, I well recall standing here at the groundbreaking four years ago – the culmination of a vision shared by Don Perkins, Julian Coles, and Mickey Green for building a world-class fishery research and marine education institution right here on the Portland waterfront. And the direct result of those tax credits is this Institute that, today, is a national leader in bringing scientists and fishermen together as partners for cutting edge, collaborative research, and in engaging our young people with a groundbreaking marine science education center to introduce our children to the sciences early on in their lives. Indeed, with this new lab, the “sky’s the limit” when it comes to better understanding the oceans beneath that sky for the benefit of us all.
So I guess you could say that this has become a win-win-win-win situation for all involved -- and shouldn’t that be a model of how government can and should work! Indeed, this Institute is a tangible reminder of the value and power of the New Markets Tax Credit in strengthening our communities – exemplifying the best that public-private cooperation can produce.
Specifically, the New Markets Tax Credit – which was enacted in December 2000 -- offers a seven-year, 39 percent Federal tax credit made through investment vehicles known as Community Development Entities. These CDEs -- like Coastal Enterprises -- combine private investment dollars with capital raised through the tax incentive to make loans to or investments in businesses in low-income communities. And incredibly, after only two years, these
Right here in Maine,
And now, while this one-year reauthorization was a crucial and positive show of support for the program by Congress, I believe that it is vital we re-authorize the program for a full five years to provide potential investors assurances that Congress is committed to this very successful program for the long term. So, consequently, I have again joined my colleague Senator Rockefeller in re-introducing legislation -- the New Markets Extension Act -- that would re-authorize the program for an additional five years. Because we shouldn’t be placing a time limit on assistance that truly works for the economic benefit of our people and our local communities – and there should be no doubt, the New Markets Tax Credit does work – and with remarkable results. So let me again thank Ms. Reed for joining with us to celebrate the success of this tax credit here in Maine, and thank you for being here to join in helping us shine a spotlight on what the credit and