NH Delegation Announces $65 Million in Tax Credits for Community Development Across New Hampshire
Manchester, NH, July 16, 2020
(Manchester, NH) – Today, U.S. Senator Jeanne Shaheen (D-NH), a senior member of the Senate Appropriations Committee, and U.S. Senator Maggie Hassan (D-NH) and Representatives Annie Kuster (NH-02) and Chris Pappas (NH-01) announced that Mascoma Community Development, LLC of Lebanon has been awarded $65 million in New Markets Tax Credits (NMTC) to incentivize development in communities in New Hampshire, Vermont, Maine and New York. Mascoma Community Development works to help raise capital, facilitate loans and support community development. The tax credits for Mascoma Community Development and other organizations were announced by the Treasury Department’s Community Development Financial Institutions Fund (CDFI) Fund, which promotes development in economically distressed urban and rural areas by investing in mission-driven financial institutions. Senator Shaheen has been a strong supporter of the CDFI Fund and as a member of the Senate Appropriations Committee, has advocated for increased funding. Last year, Senator Hassan wrote to the CDFI in support of Mascoma Community Development’s application. Congresswoman Kuster has advocated on behalf Mascoma Savings Bank’s participation in the New Markets Tax Credit Program.
“Now more than ever, rural communities throughout New Hampshire need investments that spur economic growth, particularly to help residents and small businesses weather and recover from the impact of COVID-19,” said Senator Shaheen. “These tax credits will provide a much-needed, long-term boost to Granite State communities, allowing Mascoma to provide important services and development incentives to small businesses and entrepreneurs as they begin, develop and expand their businesses. This will lift local economies and create new jobs. I’ll continue to work to secure the resources New Hampshire communities and small businesses need to recover from, grow and thrive from this crisis.”
“As the COVID-19 pandemic strains our economy, it is more important than ever that we invest in economic development initiatives to help bring more jobs to our communities,” Senator Hassan said. “I was pleased to support Mascoma Community Development in their application for this allocation, which will support local businesses and help get more people back to work. I will keep working to bring additional federal dollars to our state that support our economic recovery and help revitalize communities.”
“As we continue to respond to the COVID-19 pandemic, investing in the economic vitality of our local communities is more critical than ever before,” said Congresswoman Kuster. “Mascoma Bank has a tremendous track record working with New Markets Tax Credit Program and I am proud to support their efforts to maximize this program’s impact on New Hampshire communities. These tax credits will help fund projects to bolster economic development across the Granite State and I look forward to continuing to support these projects.”
“New Market Tax Credits are a proven way to drive investments in rural and underdeveloped communities by providing businesses with access to the flexible financing they need,” said Congressman Pappas. “This additional federal support could not be coming at a more critical time, and I am confident these investments will help New Hampshire’s economy begin to recover from the impacts of COIVD-19 and spur economic development for years to come.”
“The New Market Tax Credit (NMTC) program has proven to be an extremely impactful and cost effective tool for community development and job creation. The US Treasury announcement today of Mascoma Community Development’s award decision is gratifying confirmation that our efforts really make a difference in distressed communities, particularly in the COVID-19 era when job creation is a chief concern,” said Clayton Adams, President & CEO of Mascoma Bank.
Tax credit allocations awarded to Community Development Entities (CDE) such as Mascoma Community Development enable CDEs to offer tax credits to an investor. The total tax credit equals 39 percent of the original investment and is spread over a seven-year period, and can be combined and leveraged with other public and private investments to enhance their impact.