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November 6, 2009
Forest City in the News
Reuters, Forest City Community Development Entity Receives $55 Million in Tax Credit Allocation to Stimulate Investment in Low-Income Communities
From the press release touting what amounts to a federal bailout of Forest City Enterprises:
The allocation of $55 million will go toward providing financing for real estate development projects located in specific distressed and low-income communities. This is the third time FCCDE has received an NMTC allocation, for a total of $151 million in allocations under the program.
NoLandGrab: With the company going through hard times, the "allocation" comes just in time.
The NMTC program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a credit against federal income taxes for making equity investments in designated community development entities, like FCCDE. The investor receives a credit, claimed over a seven-year period, totaling 39 percent of the cost of the investment. The U.S. Department of the Treasury's Community Development Financial Institutions Fund administers the NMTC program. Thirty percent of the program's $5 billion funding for the latest round of allocations came from the American Recovery and Reinvestment Act of 2009.
NLG: With all of the creative subsidies Forest City Enterprises manages to exploit, we're appalled that the company actually has to pay taxes. No wonder the company has been going through a rough patch.
Forest City Enterprises launches a new web site.
Posted by lumi at November 6, 2009 4:39 AM