Washington, DC – Today, U.S. Representatives William Jefferson (D-LA) announced that the Gulf Opportunity Zone Act, which he and Rep. Jim McCrery (R-LA) authored and passed in 2005, produced $452 million in additional New Market Tax Credits (NMTC) for Louisiana companies.  Under the fourth round of allocations for the NMTC program, the Treasury Department announced that 63 organizations were selected nationally, 13 of which benefited from the additional allocations for recovery and development in the Gulf Opportunity Zone under Jefferson and McCrery’s legislation. 

“The Treasury Department’s announcement is a clear example of how the GO Zone legislation will benefit Louisiana and, specifically, recovery in New Orleans,” Jefferson said.  “It is crucial to rebuilding our economic infrastructure that businesses can now take advantage of these powerful incentives.”

The following New Orleans-based community and economic development entities received allocations: Advantage Capital Community Development Fund, LLC - $70 million; American Community Renewably Energy Fund, LLC - $42 million; Enhanced Delta Community Development, LLC - $25 million; Hibernia Community Renewal Fund, LLC - $100 million; Liberty Bank and Trust Company - $60 million; MK La Charitable Healthcare Facilities Fund, LLC - $80 million; National Cities Fund, LLC - $75 million.  The tax credit allocations will be used for recovery efforts including public/private partnerships to finance new construction, financing options for charitable healthcare facilities, providing more flexible financing options for small businesses in New Orleans and many other economic redevelopment options. 

“This $452 million will go a long way toward providing an economic boost to the New Orleans metropolitan area,” Jefferson said.  “But much more needs to be done.  I will continue to fight for more funding for our levees, more complete housing solutions, and other incentives to bring our city back.  I thank my colleagues for recognizing and responding to the great needs of my constituents and the entire Gulf Coast by providing these critically important resources.”

The Treasury Department’s community Development Financial Institutions (CDFI) Fund administers the NMTC program.  The fund is authorized to allocate up to $16 billion in NMTC authority, including $1 billion that was authorized in the GO Zone Act, for use over three years.