Two Iowa organizations have been awarded a total of $110 million in New Market Tax Credits (NMTC) to invest in rural and low-income communities throughout the state, Sen. Tom Harkin announced today. Rural Development Partners LLC of Mason City will receive $60 million in tax credits, while Iowa Community Development LC of Johnston will receive $50 million. A large share of those funds will go to assist Iowa businesses, Harkin said in a release.

“Aiding Iowa businesses with tax credits will increase economic development of Iowa communities in myriad ways – everything from helping alternative energy production to rehabilitating projects in the construction sector,” Harkin said. “I cannot think of a more timely announcement for our state.”



Initiated by Congress in 2000, the tax credit program is designed to attract private capital investment in low-income and rural areas.

Iowa Community Development last year aided six economic development projects using $45 million in NMTC funds to provide debt financing and forgivable loans. Among the projects receiving credits were Village Place in the East Village and the Riverpoint West redevelopment project. Uses for the funding could include construction and rehabilitation, building acquisition, equipment purchases, operating and maintenance expenses, site development and working capital.

Rural Development Partners will use the credits to provide equity investments and gap financing for agribusinesses, commercial forestry operations and alternative energy companies within distressed rural communities. Though it will serve all 50 states, it will provide an emphasis on underserved rural Midwestern and Plains states.