Treasury Secretary Tim Geithner named Wednesday in Boston 32 organizations that are expected to receive $1.5 billion in business tax using funds from the stimulus plan Congress passed earlier this year.
The New Markets Tax Credit program was established in 2000 and is credited with creating an estimated 210,000 construction jobs and 45,000 full-time permanent jobs.
The Recovery Act was a crucial step toward restoring economic growth, getting Americans back to work, and strengthening our nation's financial stability said Secretary Geithner
Geithner said the overall package of tax cuts and spending programs enacted 100 days ago is helping the economy end a recession that started in December 2007.
“The national economy is showing some initial signs of stability, confidence is improved, the financial system is starting to heal, credit is starting to ease a bit,” he said in Roxbury, Massachusetts. “It’s just the beginning, however. We have a lot more work to do to lay the foundation for a sustainable recovery with the gains broadly shared among all Americans.”
The credit permits individual and corporate taxpayers to receive a federal income tax deduction for making qualified equity investments in community development entities.
The credit totals 39 percent of the investment and can be claimed over seven years.