Dayton Daily News: Region lands $11M in tax credits

March 28, 2011 | Portman Difference

A locally administered program aimed at funding economic development in poverty-stricken areas has received ?$11 million in federal tax credits, officials said Thursday.

The tax credits granted by the U.S. Treasury to the Dayton Region New Market Fund can be paired with private investment for real estate, local business and other projects, officials said.

CityWide Development Corp., the city of Dayton’s development arm, is sponsor of the Dayton Region New Market Fund.

“This is a great win for Dayton,” said Steve Budd, president of CityWide. “Through this award we are able to leverage new sources of monies to fund local projects and create jobs.”

Budd said the organization’s application included $50 million in potential projects throughout the region.

A governing board and a process for awarding the credits have been established, Budd said.

A project must be financially viable and poised to be under way within 12 months to qualify for funds generated by the tax credits, CityWide said in a news release.

Of the $11 million in tax credits, officials hope to commit at least half to projects before June 1, when the Treasury begins a new round of applications for the credits, Budd said.

The state’s contingent of U.S. senators lauded the new credits. The local credits were part of $3.5 billion in credits issued through the Treasury program.

“I am pleased to see that the U.S. Department of Treasury shares a commitment to investing in the Dayton region,” Sen. Rob Portman, R-Ohio, said. “By making it easier to create jobs and invest in our communities, the Dayton Region New Market Fund, paired with this tax credit, will have a lasting effect on the region for years to come.”

Sen. Sherrod Brown, D-Ohio, said, “These tax credits will help to generate development in hard-hit communities and spur new job growth and opportunities.”