$55 Million Tax Credit for Princeton Organization to Jumpstart Economic Activity

CCG Community Partners, LLC in Princeton has been awarded $55 million as part of a program to attract private investment and spur economic activity in low income communities throughout the state, according to U.S. Senators Bob Menendez and Cory Booker.

The money was part of a total of $170 million through the Community Development Financial Institutions (CDFI) New Markets Tax Credit Program (NMTC). This federal tax credit helps finance projects by allowing investors to make larger investments than would otherwise be permitted.

Organizations that receive the tax credit allocation authority under the program are domestic corporations or partnerships that provide loans, investments, or financial counseling in low-income urban and rural communities.

The tax credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period.

"New Markets Tax Credits are designed to attract private sector investment in our distressed communities by creating a mutual benefit for both the investor and the community," Menendez said. "I have long been a supporter of public-private partnerships like this because they work. Since its creation, the program has been successful in its mission to encourage investment across New Jersey and the nation. The New Markets Tax Credit is simply the seed money for growth and prosperity."

"As a former Mayor I know firsthand that public-private partnerships are an essential component to job creation and development in low and moderate income communities," Booker said. "The New Markets Tax Credits announced today will spur investments and incentivize development in distressed communities in NJ and throughout the nation."