The group — known as the Danville, Virginia Community Development Entity — was awarded $30 million through the federal New Markets Tax Credits program, the city reported Thursday.
Danville was one of 107 groups picked from a pool of 199 applications. This marks the third round of tax credits awarded to the group that was created to administer the program for Danville. River District Tower and Litehouse Foods were both projects that benefitted from previous credits.
“I am thankful that the U.S. Treasury has provided us with these tax credits and our team for making the application,” Mayor Alonzo Jones, who is chair of the local entity, said in a statement. “I look forward to working with the board to determine how to best use this resource.”
Applications are being accepted for potential projects, according to Corrie Bobe, the director of the Danville Office of Economic Development and Tourism who also serves as executive director of the Danville Community Development Entity.
“The purpose of the Danville CDE is to diversify Southern Virginia’s economy by lending to entities that create quality jobs,” Bobe said in a statement. “Through this new award, the CDE will be well positioned to assist in moving impactful projects forward across the region.”
New Markets Tax Credits, established by Congress in 2000, is a program administered by the U.S. Department of the Treasury’s Community Development Financial Institutions fund, according to the news release.
It gives investors an avenue to receive credit against federal income taxes when making certain investments. In turn, those entities are required re-invest the equity investments in low-income communities, according to the release.