RESOURCES FOR REDEVELOPING THE MENOMONEE VALLEY FUNDS AND FINANCING NEW MARKETS TAX CREDIT (NMTC) Managed through the US Department of Treasury, the New Markets Tax Credit Program will spur approximately $15 billion in investments into privately managed investment institutions. In turn, these privately managed investment institutions, or Community Development Entities (CDEs), will make loans and capital investments in businesses in underserved areas (the entire Menomonee Valley qualifies). By making an investment in a CDE, an individual or corporate investor can receive a tax credit worth 39 percent (30 percent net present value) of the initial investment, distributed over 7 years, along with any anticipated return on their investment in the CDE. Several Wisconsin financial institutions have received tax allocation authority, and as a result, have funds to invest in the form of equity and debt in qualifying projects. The terms and deal structure varies with each institution – so it is recommended to shop around. For information see www.cdfifund.gov. STATE OF W I – BROW NFIELD GRANT PROGRAM The Brownfields Initiative Grant Program is a $7-million per fiscal year grant program administered by the Department of Commerce (DOC). Funding is available for Brownfield projects that promote economic development and have a positive effect on the environment. The average grant size in FY04 was $476,000. MVP has worked closely with the DOC on many Valley projects. Website Contact: www.commerce.state.wi.us/CD/CD-bfi-grants.html Jason Scott, (608) 261-7714, jscott@commerce.state.wi.us. VALLEY FINANCIAL RESOURCES PAGE 1 of 3 MEDC – LOAN PRODUCTS The Milwaukee Economic Development Corporation (MEDC) is a City-sponsored lending and land development company that offers financing programs to small companies in the City of Milwaukee and the four-county metropolitan area. MEDC has several loan products that serve the needs of small and larger businesses. The investment of more than $205 million has resulted in the creation of nearly 12,000 jobs in the Milwaukee area and stimulated over $790 million in private investment. MEDC borrowers range from manufacturing firms to bakeries, from software developers to specialty groceries. Website: Contact: www.medconline.com David Latona, (414) 286-5682, david.latona@medconline.com STATE OF W I – BROW NFIELD SITE ASSESSMENT GRANT Up to $25,000 is available to existing or potential property owners as matching funds for site assessment, confirmatory sampling and remedial action plans for sites located in the City of Milwaukee with a proposed redevelopment project. MVP has secured $30,000 for the Stockyards site through this program. Website: Contact: http://dnr.wi.gov/org/aw/rr/rbrownfields/sag.htm Dave Misky, (414) 286-8682, David.Misky@milwaukee.gov TAX INCENTIVES RENEW AL COMMUNITY TAX INCENTIVES The City of Milwaukee has been recognized under the Community Renewal Act of 2000 as a Renewal Community (RC), a status that gives a designated area exclusive access to tax incentives to spur economic development initiatives. The entire Valley is within the boundaries of Milwaukee’s RC. The package of tax incentives includes two very attractive incentives for this site: 1. RC Wage Credits: Up to $1,500 per year per employee (new & existing) that lives and works in the RC. The credit is self-verified and claimed on IRS form 8844. 2. Commercial Revitalization Deduction (CRD): Businesses that construct or rehabilitate commercial property in the RC and receive approval through the Redevelopment Authority of the City of Milwaukee (RACM) can deduct a portion of the costs of acquisition and rehabilitation over a shorter period of time than permitted under standard depreciation rules. A business can elect a deduction of one-half of qualifying expenditures up to $10 million for any one project in the year the building is placed in service or can deduct all qualifying expenditures pro rata over 10 years. Website: Contact: www.milwaukeetaxinfo.com David Latona, (414) 286-5682, david.latona@medconline.com VALLEY FINANCIAL RESOURCES PAGE 2 of 3 COMMUNITY DEVELOPMENT ZONE W AGE TAX CREDITS Credit against Wisconsin state income tax liability of $3,000-$8,000 for new jobs created. Credits awarded based on starting wages, benefits, and other considerations. The business must be expanding in, or relocating to, designated areas (most of Valley is within the zone). New jobs created must be fulltime equivalent. Must be approved by the City and Wisconsin Department of Commerce. Websites: http://www.medconline.com/TaxCreditsJobCreation.htm http://www.commerce.state.wi.us/CD/CD-bed-devz.html Contact: Marcia Theusch, (414) 286–5839, marcia.theusch@medconline.com TAX CREDITS FOR ENVIRONMENTAL REMEDIATION Businesses locating or expanding in the City of Milwaukee's Development Zones, designated by the Wisconsin Department of Commerce, may qualify for tax credits for initiating environmental remediation. Up to 50% of the costs of remediation and testing may qualify for tax credits. Nearly all areas zoned for manufacturing uses in the City are included in the Development Zone. Website: Contact: http://www.medconline.com/TaxCreditsEnvironmentalRemediation.htm Dave Misky, MEDC, (414) 286-8682, David.Misky@milwaukee.gov W ORK OPPORTUNITY TAX CREDIT (W OTC) W ELFARE TO W ORK (W TW ) CREDIT WOTC: Credit up to $2,400 against Federal taxes for businesses for each new hire from groups that have high unemployment rates or other special employment needs. Business must receive approval from Department of Workforce Development (DWD) to certify employee is in targeted group. WtW: Two-year credit against Federal taxes for businesses that hire long-term family assistance recipients. Credits up to $3,500 for the first year, and $5,000 for the second year for each new hire. Business must receive approval from DWD. Website: Contact: http://www.commerce.state.wi.us/CD/CD-bed-edz-wotc.html Vern Muche, (608) 267-0315, vmuche@commerce.state.wi.us TECHNOLOGY ZONE TAX CREDITS Milwaukee is participating in the Wisconsin Technology Zone Program with two Technology Zones allocated to Southeast Wisconsin. The maximum tax credit available through this program is $500,000. Tax credit certification is provided by the Wisconsin Department of Commerce based upon a recommendation from the Southeast Wisconsin Regional Economic Partnership. Websites: Contact: http://www.commerce.state.wi.us/cd/cd-bed-tz-general.html Marcia Theusch, (414) 286–5839, marcia.theusch@medconline.com VALLEY FINANCIAL RESOURCES PAGE 3 of 3