Montana CDC Receives $65 Million Allocation to Fund Start Ups and Expansions
Missoula, MT – June 17, 2015 – (RealEstateRama) — The US Treasury Department announced on June 15 an award of $65 million in New Markets Tax Credits (NMTC) to Montana Community Development Corporation (Montana CDC).
With the award, Montana CDC will continue to fund business start-ups and expansions in Montana and Idaho that create jobs and significant community impact. This is the sixth award Montana CDC has received since 2008, and it brings their cumulative total to $341 million.
Montana CDC works with investors to turn the credits into cash and then uses that cash to make projects like the Red Lion Inn in Polson a reality. The 80-room hotel not only creates 42 new full-time jobs in the rural community, its conference space and adjacent restaurant will also attract more regional events and conferences year-round: important progress for an economy that relies on seasonal tourism. The hotel is also an anchor of a new development on the south end of Polson, and more businesses are already building on the property.
“Being able to bring this additional capital to Montana is a great win for everyone,” said Dave Glaser, CEO of Montana CDC. “Through NMTC, we’re able to finance projects that create jobs and build community vitality in areas that really need it. We now have the opportunity to continue that work.”
Montana CDC was awarded the tax credits after a highly competitive application process: 263 organizations applied requesting $19.9 billion, but only 76 received allocations totaling $3.512 billion. Montana CDC received one of the largest awards in the country.
Since 2009, Montana CDC has used the tax credits to fund 22 projects totaling $266 million, including the Bullhook medical clinic in Havre, the new Universal Athletics headquarters in Bozeman, Northwestern Energy’s new headquarters in Uptown Butte, and the tribal government building on the Fort Peck Reservation in Poplar to name a few. All together, the projects Montana CDC has funded with NMTCs have created more than 1,600 permanent jobs, more than 1,100 construction jobs, and led to an estimated economic impact of more than $300 million over the long term.
In the coming year, Montana CDC expects to use the tax credits to fund projects that will change the economic landscape of more Montana and Idaho communities.
Montana’s congressional delegation is supportive of the NMTC program and the economic opportunity it brings to the region.
Senator Jon Tester, a senior member of the Senate Banking Committee, has long supported Montana CDC’s efforts to keep rural Montana thriving.
“Montana CDC knows how to invest every dollar in ways that reap benefits for Montana communities and small businesses for years to come,” Tester said. “This award is a result of the good work that Montana CDC has done and will continue to do across our state.”
Senator Steve Daines, also a long-time supporter of NMTC while in the House and Senate, recognizes the importance of the program.
“The New Markets Tax Credits program has a strong history of success in Montana and this allocation will allow Montana CDC to continue working to build success stories in communities across our state,” Daines stated. “It’s exciting to see Montana small businesses having the tools and support they need to create more good-paying jobs.”