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Ecotrust Will Allocate $30 Million in New Markets Tax Credits from the U.S.
Treasury to Innovative Projects in Rural and Distressed Communities
Senators and Congressmen Advocate for Quick Action
PORTLAND, Ore.--(Business Wire)--
The U.S. Treasury has selected Ecotrust to allocate $30 million in new markets
tax credits to innovative initiatives that create economic, social and
environmental benefit in the Northwest`s rural and disadvantaged communities.
The allocations provided by Ecotrust will:
1. Help finance the purchase and long-term management of forests by entities who wish to further the public benefits - such as carbon storage, habitat enhancement and economic opportunities - that forests provide.
2. Assist tribes in repatriating former tribal forestlands and to implement long-term management plans that improve forest health and provide economic benefits to the tribe.
3. Help finance the start up or expansion of wood pellet, biomass and other facilities that create economic opportunities for rural communities and provide a market for waste wood, logging slash, and other materials. The intent is to divert waste from landfills, improve forest health, reduce the risk of forest fires, develop markets for waste materials, and enhance the profitability of forests that are managed to further the public interest.
Broad Benefit for the Region
The $30 million in new markets tax credits to Ecotrust were among $5 billion in
allocations made across the country on October 30 by the U.S. Treasury, $1.5
billion of which is from the American Recovery and Reinvestment Act. ShoreBank
Enterprise Cascadia is among others in the region receiving new markets tax
credit allocations; they received $40 million.
New markets tax credits are issued by the U.S. Department of the Treasury to
stimulate investment in communities suffering from poverty and unemployment.
Community development entities such as Ecotrust compete for new markets tax
credit allocations annually and are awarded the funds based on their experience,
capacity, and ability to stimulate investment and jobs in economically
disadvantaged communities. Historically, these credits are applied to urban
areas, making awards for rural community development especially significant.
Through an affiliate, Ecotrust will make investments in businesses in the forest
products sector and employ management practices that emphasize both job creation
and long-term ecological restoration. Investments will allow degraded
forestlands with value as fish and wildlife habitat to be purchased, restored
and put in long-term harvest rotations. Investments are designed to occur in
areas designated as "economically distressed" by the U.S. Census Bureau.
Support from Oregon`s Political Leaders
Oregon`s senators and congressmen endorsed the allocation and are calling for
quick application of the credits.
"If it weren`t for the new markets tax credits, worthy job-creating projects
throughout the state would not have been possible," said Senator Ron Wyden.
"This access to capital will not only help jump start new investments, it will
help breathe life into the struggling construction trades and help create
family-wage jobs for Oregonians."
"This tax credit will help Ecotrust continue its important work on
conservation-oriented forest management," said Congressman Peter DeFazio. "It
will help continue their work on a range of economic development projects
including funding the purchase of forestland for conservation and habitat
improvements in critical areas, to expanding biomass facilities that both create
economic opportunities for rural communities and better use wood waste and
forest slash."
"As Oregon contends with double digit unemployment, the news of millions for our
state in new markets tax credits is welcome, particularly for rural communities
that are hardest hit by job loss and the poor economy," said Congressman Earl
Blumenauer. "I congratulate Ecotrust on securing this investment and look
forward to working with our partners to ensure it is well managed."
"Ecotrust`s work reflects the best of Oregon values," said Congressman David Wu.
"I`m truly excited about the possibilities for our state as a result of the
federal government`s decision to give Ecotrust this award, and look forward to
seeing these tax credits used to support projects that will make a difference in
our communities."
About Ecotrust
Over nearly 20 years, Ecotrust has converted $60 million in grants into more
than $300 million in capital for local people, businesses, and organizations
from Alaska to California. Ecotrust`s many innovations include co-founding the
world`s first environmental bank, starting the world`s first ecosystem
investment fund, creating a range of programs in fisheries, forestry, food,
farms and children`s health, and developing new scientific and information tools
to improve social, economic and environmental decision-making. Ecotrust works
locally in ways that promise hope abroad, and it honors and supports the wisdom
of Native and First Nation leadership in its work. More on the Web at
www.ecotrust.org.
Ecotrust
Seth Walker, 503-467-0752
seth@ecotrust.org
Copyright Business Wire 2009
