Johnson Announces Tax Credit for Dakotas America Investment Sioux Falls — U.S. Senator Tim Johnson (D-SD) is proud to announce that Dakotas America, LLC will receive an $80 million New Markets Tax Credit (NMTC) allocation for economic development across North and South Dakota from the U.S. Treasury Department's Community Development Financial Institutions (CDFI) Fund. South Dakota Rural Enterprise (SDREI) will administer the fund for Dakotas America and offer low interest loans to communities across North and South Dakota. "South Dakota Rural Enterprise and Dakotas America will be able to use these tax credits to fund community projects in communities across South Dakota and North Dakota," Johnson said. "With credit tight, this is great news for continued economic development in South Dakota." Johnson helped secure Dakotas America's 2006 $50 million New Markets Tax Credit (NMTC) award, which has already begun to show promising results in the state. "Dakotas America is truly a rural Community Development Entity (CDE) serving North and South Dakota, places where capitalizing large projects in distressed communities is a major challenge. Our 2006 allocation is having significant impact on North Central South Dakota and South Central North Dakota communities by bringing telecommunications infrastructure to the Standing Rock Indian Reservation and helping to finance grain terminals in Bowdle and McLaughlin South Dakota. This new allocation to Dakotas America will bring capital investment to places that matter, rural communities in hard to serve areas. We are grateful to the Congressmen from both states and the many champions for rural development that ensured that a portion of the 2008 allocations went to CDEs that truly served rural places and people. We look forward to doing great things," said Beth Davis, President of SDREI in Sioux Falls. New Markets Tax Credits are allocated annually through a competitive application and rigorous review process. Dakotas America, LLC will make debt and equity investments in new commercial businesses and community infrastructure projects that can spawn significant subsequent commercial business development. The vast majority of Dakotas America's projects will be aimed at the most distressed rural, low-income communities in its service area, including Native communities. The NMTC allocation will be used to create direct loans that exhibit significantly lower rates, and other more favorable lending terms. As a member of the Appropriations Committee, Johnson has defended funding for the CDFI program in part because the Treasury Department reports that every federal dollar invested in a CDFI leverages 27 private dollars. This year, he named the CDFI program one of his top requested priorities to the Financial Services and General Government Appropriations Subcommittee. Johnson also cosponsored a bill to extend the NMTC program for five years this Congress.
By David Lias For most people in Vermillion, Cheryl Miller and Pamella Jackson have been merely images on newsprint. The … Read Article