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
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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
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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
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