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Feb 14, 2007 Mid-State provides CDFI Tax Credit Investment Mid-State Bank & Trust has provided a $100,000 investment to the San Luis Obispo County Housing Trust Fund (HTF) under California’s Community Development Financial Institution (CDFI) Tax Credit program. “We are excited to receive Mid-State Bank & Trust’s investment,” explains Jerry Rioux, the HTF’s executive director, “because it provides interest-free capital for our revolving loan fund and is our first under the CDFI Tax Credit program.” The Bank is lending $100,000 to the HTF at a 0% interest rate with no payments for five years. In exchange, the Bank will receive a 20% state income tax credit. This will reduce the Bank’s state income taxes by $20,000. “Mid-State has a strong commitment to our community and is one of our top supporters,” Rioux notes. “With this loan, the Bank has invested $1.1 million in our loan fund. It has also provided multiple contributions to support the HTF.” California’s CDFI Tax Credit Program is administered by the California Organized Investment Network (COIN) of the Department of Insurance. It was created to encourage investments in certified CDFIs (nonprofit loan funds and similar organizations) by corporations and individuals. Up to $2 million in tax credits are available annually through 2011. To qualify for tax credits, investors must provide at least $50,000 for five years at no cost to the CDFI. The tax credits may be taken in the year of the investment or over multiple years.
“We hope to receive additional tax credit investments from local
businesses and individuals in the future,” Rioux adds. |
(c) 2004-5 San Luis Obispo County Housing Trust Fund - This page was last updated on 10/22/2007