ST. LOUIS--(BUSINESS WIRE)--Final approval today of the Protecting Americans from Tax Hikes Act will enhance U.S. Bank’s (NYSE: USB) efforts to improve communities through affordable-housing, renewable energy and economic development in low-income areas.
The PATH Act, signed into law today by President Obama, included extensions through 2019 of the New Markets Tax Credit and renewable energy tax credits, as well as permanent passage of the key nine percent low-income housing tax credit.
“These tax credit tools are absolutely essential to help ensure all of our nation’s communities and people are able to reach their full potential. We have been working with our customers for nearly 30 years to address issues of equity through investments in affordable housing, economic development and renewable energy. The president and Congress’ actions enable us to do more towards creating a world where all people have equal access to the opportunities at the heart of possibility,” said Zack Boyers, chairman and CEO of U.S. Bancorp Community Development Corporation--one of the nation’s most active community investment tax credit investors.
Boyers is one of the newly announced members of the U.S. Bank Coaches program. The coaches work with and advise individuals and groups on community development, charitable giving and a variety of consumer interests such as cyber security.
The PATH legislation was lauded by Matt Philpott, senior vice president of USBCDC’s New Markets and historic tax credit business. Disadvantaged communities often require years of work to pull together sufficient resources. Short-term extensions of key financing tools tend to create uncertainty about whether the resources can be relied on when needed, Philpott said. A five-year extension of the $3.5 billion in annual New Markets Tax Credit financing authority is a truly helpful step in the right direction for creating a sustainable community development future for our country, he added.
“The New Markets extension allows us to lay plans with our customers further into the future. Because these economic development tools are so critical for catalyzing community improvements that might not otherwise have been funded by traditional sources, we'll be able to give longer lead-time projects more certainty. That will, in turn, allow them to make other necessary commitments and build capacity over a longer period of time,” Philpott said.
Two renewable energy tax credits that were extended by five years, phasing down in value each year, will help communities lower residents’ and businesses’ utility bills by encouraging investment in solar, wind and other green energy sources.
"U.S. Bancorp recognizes the importance of the environmental challenges facing our customers and communities, especially in the areas of climate change. Considering the risks of climate change and pollution, we recognize the extension of the investment tax credit will provide long-term predictability to the bank, its customers and the communities we serve. Growth in the renewable energy sector has been a bright spot for job creation and we saw the threat of these credits’ expiration already causing uncertainty in project developments and raising capital. As an established investor in renewable energy, and with passage of the PATH Act, we are well-positioned to bring new capital into the market while serving our existing customers,” said Darren Van’t Hof, vice president and head of USBCDC’s renewable energy production group.
The nine percent low-income housing tax credit becomes permanent under the PATH Act and will have a positive effect on reducing housing inequity in every state.
“U.S. Bank has been a long-time advocate of and investor in affordable housing for low-income people. We recognize how critical safe and secure housing is in our communities. The inclusion of the permanent nine percent low-income housing tax credit rate floor will increase predictability and financial feasibility of affordable housing at a time when the need continues to grow,” said Beth Stohr, senior vice president and head of the bank’s affordable housing group.
With nearly $16 billion in managed assets as of Sept. 30, 2015, U.S. Bancorp Community Development Corporation, a subsidiary of U.S. Bank, provides innovative financing solutions for community development projects across the country using state and federally sponsored tax credit programs. USBCDC's commitments provide capital investment to areas that need it the most and have contributed to the creation of new jobs, the rehabilitation of historic buildings, the construction of needed affordable and market-rate homes, the development of renewable energy facilities, and the generation of commercial economic activity in underserved communities. Visit USBCDC on the web at www.usbank.com/cdc.
U.S. Bancorp (NYSE: USB), with $416 billion in assets as of September 30, 2015, is the parent company of U.S. Bank, the fifth-largest commercial bank in the United States. The company operates 3,151 banking offices in 25 states and 5,001 ATMs, and provides a comprehensive line of banking, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com.