Montana CDC Awarded $65 million in New Markets Tax Credits (NMTC) from the U.S. Treasury Department

This is the fourth award received by Montana CDC which has now received $221 million cumulatively. These tax credits are powerful in creating jobs and building communities. Montana CDC works with investors to turn the credits into cash and then uses that cash to fund business start ups and expansions across Montana and Idaho.

"This award allows us to move forward on important projects that will create jobs and economic vitality in Idaho and Montana," said Dave Glaser, President of Montana CDC. "We have over $100 Million in projects that are ready to go and this gives us the green light to move forward."

Without Montana CDC’s allocation of NMTC, nearly $222 million in private investment and economic growth would not have occurred over the past five years. Currently, four New Markets Tax Credit projects are under construction in Montana and Idaho. These include a theatre expansion in downtown Helena, an office building in Helena’s Last Chance Gulch, a medical facility expansion in Coeur D’Alene, Idaho, and an office building in the Billings urban renewal district. All total, the projects under construction are expected to create over 300 construction jobs, and create and retain over 500 permanent positions.

Nathan Boyer, of Boyer Development, explains why he utilized New Markets Tax Credits to finance his project in Billings. "It is an economic development factor… It supports the economy of Billings to maintain jobs downtown, and that helps keep the vibrancy of the community alive."

Montana CDC has closed a total of 10 projects with banks and developers including grocery stores, a building rehab in uptown Butte, a health and fitness facility in Helena, a clinic in Coeur D’Alene, and three downtown office buildings in Helena and Missoula. In the next three months, Montana CDC expects to close additional projects including an agricultural processing plant in Northeastern Montana and community health and fitness facilities in two additional rural communities.

Mark Esponda, of American Federal Savings Bank in Helena, utilized New Markets for the first time in 2012 to help fund an office building in Helena’s Last Chance Gulch. "New Markets gives developers and banks the ability to do projects that are otherwise not economically feasible. It opens up a bigger market to do some of those projects- it’s a win win."

U.S. Senator Max Baucus, a champion of the New Markets program who fought to bring the tax credit to rural areas and to keep it alive when it faced an uncertain future in 2010, gave Montana CDC the opportunity to prove their merit in this very competitive process.

"This all boils down to one thing: good-paying jobs for Montanans. This award will help Montana CDC move full steam ahead on projects that are directly supporting hundreds of Montana jobs and infusing capital into Main Street businesses," said Baucus, Chairman of the tax-writing Finance Committee who also authored a provision to ensure rural areas get their fair share of the New Markets Tax Credits program. "I’m going to keep fighting to make sure Montana gets its fair share of resources from the Treasury Department because investing in our communities helps us attract new business."

U.S. Senator Jon Tester also strongly supports this financing tool. "This New Market Tax Credit award will provide more Montana small businesses with the resources they need to grow and create jobs," said Senator Jon Tester. "The Montana Development Corporation has a long track record of strengthening our state’s small businesses, and I’m glad to call them a partner as we work together to improve our communities and our economy."

For press interviews or questions contact:

Dave Glaser, President

Montana CDC (Montana Community Development Corporation)

Phone: 406.728.9234 #211

Cell: 406.529.3352

[email protected]

http://www.mtcdc.org

Heidi DeArment, Vice President

Montana CDC (Montana Community Development Corporation)

Phone: 406.728.9234 # 213

Cell: 406.544.9755

heidid@mtcdc