The U.S. Department of Treasury awarded $215 million in tax credits to three Iowa-based organizations investing in rural and urban low-income communities, Sen. Tom Harkin announced yesterday.

Iowa Community Development LC of Johnston, Midwest Renewable Capital of Grimes and Mason City-based Rural Development Partners LLC will use the New Markets Tax Credit (NMTC) program award to make qualified investments supporting business activities in low-income areas.

“Aiding Iowa businesses with these tax credits will increase economic development of communities across the state in many ways, from helping alternative energy production to rehabilitating projects in the construction sector,” Harkin said in a release.

Funding for the NMTC program, which provides individual and corporate taxpayers with a credit against federal income taxes for making qualified equity investments through intermediary Community Development Entities (CDEs), was included in the federal economic stimulus package.

Rural Development Partners was awarded $80 million in tax credits to provide loans and equity investments for agribusinesses, commercial forestry operations and alternative energy companies within distressed rural communities.

Iowa Community Development was awarded $70 million in tax credits to provide debt-financing and forgivable loans to Iowa businesses involved in construction and rehabilitation projects, building acquisition, equipment purchases, operating and maintenance expenses, site development and working capital.

Midwest Renewable was awarded $65 million in tax credits to provide access to below market rate capital for renewable energy businesses and “green” real estate projects in the rural Midwest.

The CDEs have a primary mission of serving low-income communities or low-income people.

“As our economy starts to recover, I cannot think of a more timely announcement to help continue its progress,” Harkin said.

According to the release, a large share of these funds will go to assist Iowa businesses.