Regional Development Fund Gets $45 Million for Tax Credits
AKRON – The Development Fund of the Western Reserve Inc. has been allocated $45 million in federal funds, U.S. Rep. Tim Ryan announced Monday.
The fund is a private non-profit managed by the Development Finance Authority of Summit County. Its purpose is to enable investments that target eligible low-income communities throughout its 18-county service area, which includes Columbiana, Mahoning and Trumbull counties
“The Development Fund of the Western Reserve now has the opportunity to fund economic development projects in Akron, Youngstown, Wooster and other areas in northeastern Ohio,” said Chris Burnham, president of the Development Finance Authority of Summit County.
The grant award is funded through the U.S. Department of Treasury’s New Markets Tax Credit Program, which was established by Congress in 2000 to spur investments into operating businesses and real estate projects in low-income communities.
The program attracts investment capital by permitting individual and corporate investors to receive a tax credit against their federal income tax return in exchange for making equity investments in specialized financial institutions called Community Development Entities.
“This funding will be instrumental in forming strong public-private partnerships that will spur economic development and growth in under-served, low-income urban and rural communities throughout Northeast Ohio. These business and real estate investments will bring jobs and opportunities to our communities most in need,” Ryan, D-13 Ohio, said.
The 18-county region served by the Development Fund of the Western Reserve Inc. does not include Cuyahoga County. In a separate allocation, the Cleveland New Markets Investment Fund II was approved for $50 million in New Market Tax Credits. The fund is operated by Cleveland Development Advisors LLC, an affiliate of the Greater Cleveland Partnership.
Pictured: Portion of Ohio map shows counties (in yellow) served by the Development Fund of the Western Reserve Inc.
Copyright 2023 The Business Journal, Youngstown, Ohio.