Mascoma Community Development awarded $65m in tax credits
Lebanon-based entity will fund projects in NH, Vt., Maine and NY
Mascoma Community Development, LLC of Lebanon has been awarded $65 million in New Markets Tax Credits to incentivize development in communities in New Hampshire, Vermont, Maine and New York.
Mascoma Community Development, a community development entity established in 2013 as a wholly-owned subsidiary of Mascoma Bank, works to help raise capital, facilitate loans and support community development. The tax credits for Mascoma Community Development and other organizations were announced last week by the U.S. Treasury Department’s Community Development Financial Institutions Fund (CDFI) Fund, which promotes development in economically distressed urban and rural areas by investing in mission-driven financial institutions.
U.S. Senator Jeanne Shaheen (D-NH), U.S. Senator Maggie Hassan (D-NH) and Representatives Annie Kuster (NH-02) and Chris Pappas (NH-01) applauded the announcement. Sen.Shaheen, a member of the Senate Appropriations Committee, has advocated for increased funding for the CDFI Fund. Last year, Sen. Hassan wrote to the CDFI in support of Mascoma Community Development’s application. Congresswoman Kuster has also advocated on behalf Mascoma Savings Bank’s participation in the New Markets Tax Credit Program.
“Now more than ever, rural communities throughout New Hampshire need investments that spur economic growth, particularly to help residents and small businesses weather and recover from the impact of Covid-19,” said Sen. Shaheen. “These tax credits will provide a much-needed, long-term boost to Granite State communities, allowing Mascoma to provide important services and development incentives to small businesses and entrepreneurs as they begin, develop and expand their businesses. This will lift local economies and create new jobs. I’ll continue to work to secure the resources New Hampshire communities and small businesses need to recover from, grow and thrive from this crisis.”
“Mascoma Bank has a tremendous track record working with New Markets Tax Credit Program and I am proud to support their efforts to maximize this program’s impact on New Hampshire communities,” said Congresswoman Kuster. “These tax credits will help fund projects to bolster economic development across the Granite State and I look forward to continuing to support these projects.”
“The New Market Tax Credit (NMTC) program has proven to be an extremely impactful and cost effective tool for community development and job creation,” said Clayton Adams, president and CEO of Mascoma Bank. “The U.S. Treasury announcement of Mascoma Community Development’s award decision is gratifying confirmation that our efforts really make a difference in distressed communities, particularly in the Covid-19 era when job creation is a chief concern.”
Tax credit allocations awarded to Community Development Entities (CDE) such as Mascoma Community Development enable CDEs to offer tax credits to an investor. The total tax credit equals 39 percent of the original investment and is spread over a seven-year period, and can be combined and leveraged with other public and private investments to enhance their impact.