All over Boston and New England, older buildings sit available and abandoned. New Markets Tax Credits allow developers and land lord the ability to re-open these buildings for business, all the while stimulating the economy, offering jobs, and breathing new life into our communities.
In Berlin, the former Fraser Papers mill is being replaced by a biomass plant that will not only result in hundreds of construction and permanent jobs, but will also buy $27 million worth of wood every year from local timber owners.
In Concord, the development of the two downtown buildings has pumped $35 million of economic life into the city's new arts district.
And in Plymouth, MidState Health Center and a medical office building next door provide primary care to 85 percent of the residents in that under-served area.
Those who built these projects say none of them would have happened without federal New Market Tax Credits, an obscure program that wasn't even in place a decade ago, and may be a quiet casualty in the politicized budget wars in Washington.
The program -- which allows a bank or finance company to take 39% off its taxes -- is the kind of complicated corporate tax break that has gotten a bad name lately, because it enriches banks, developers, attorneys and consultants.
But in New Hampshire alone, the New Market program has contributed to a dozen projects, resulting in more than $200 million of economic activity -- from hotels in Concord and Portsmouth and the redevelopment of old mill buildings in Claremont and Newmarket, to a strip mall in Derry and the acquisition of conservation land in Errol.
When all is said and done, the developer may end up reducing the cost between 20% and 25%. That subsidy gives an "economic tailwind to a project" that gets it "over the hump."
Not a single one of these projects would have happened if not for the New Market Tax Credit feature.
For information on applying for, selling or using New Market Tax Credits in Boston and New England, contact The Cherrytree Group.