The United States Treasury announced Nov. 17 that a new round of $7 billion worth of tax credits was awarded to 120 organizations across the U.S. Finance New Mexico LLC will receive $45 million of the credits. The limited liability company is owned and managed by the New Mexico Finance Authority, based in Santa Fe, with 1 percent of the LLC owned by New Mexico Community Capital.
The award means developers and local businesses in rural and low-income areas will soon have access to $45 million worth of “patient capital,” the kind with low interest rates you can’t always find at a bank.
Individuals and corporations buy tax credits to help them lower their state and federal tax rates. The money is then used to provide loans to fund projects such as new development, renewable energy, creation of economic base jobs and help for existing businesses to expand.