Washington, DC - U.S. Senators Robert Menendez and Cory Booker (both D-NJ) today announced the NJ Redevelopment Authority (NJRA) is being awarded $20 million in New Markets Tax Credits (NMTC).
This federal funding, through the U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund), will support NJRA's efforts to respond to identified capital gaps in areas with high poverty, low wage and high unemployment in Elizabeth, Jersey City, Newark and areas of New Jersey severely impacted by Superstorm Sandy.
"Whether it was the Great Recession's financial downturn or Superstorm Sandy's devastating wrath, too many New Jerseyans continue to struggle as we keep on our path to full recovery," said Senator Menendez. "That is why I am so pleased to announce this much-needed federal funding to support NJRA's efforts to encourage investment, and spring quality, good-paying jobs in some of New Jersey's communities fighting to get back on their feet. As a strong supporter of public-private partnership like this program, I will continue to ensure the federal tax code is used efficiently to foster the community development, economic growth and job creation needed in New Jersey and across our nation."
"For many communities the physical and emotional strain of poverty was felt long before Superstorm Sandy swept through our state and I have seen first-hand its impact on far too many of New Jersey's families," said Senator Booker. "Senator Menendez and I know all too well how important this NMTC award is in restoring hope and opportunity to New Jerseyans who are in desperate need of our help. This award will stimulate our local economy, create jobs and help lift residents crushed by high unemployment out of poverty."
Last month, Senator Menendez highlighted the importance of New Markets Tax Credit (NNTC) during a visit to the Newark Farmers Market-a state-of-the-art, energy-efficient food distribution center that supplies fresh produce to hundreds of New Jersey grocers.
About the New Markets Tax Credit Program
The NMTC Program permits taxpayers to receive a credit against federal income taxes for making qualified equity investments in investment vehicles known as Community Development Entities (CDEs). These CDEs offer the credits to taxable investors in exchange for stock or a capital interest in the CDE. Substantially all of the qualified equity investment must in turn be used by the CDE to provide investments in low-income communities -- investments that will help finance community development projects, stimulate economic growth, and create jobs.