Wyoming developers have another resource to launch their next project with the arrival of the nonprofit Montana and Idaho Community Development Corporation (Montana and Idaho CDC).
The company provides both New Markets Tax Credits and small business loans for “almost bankable” businesses.
“We just made the announcement last week, and the response has been immediate,” said Dave Glaser, company president. “We are blown away and excited because it means we are providing a resource needed by folks in Wyoming.”
The organization has financed $400 million in projects across Idaho and Montana, and Glaser expects to finance $12 million to $15 million in Wyoming in the coming year.
Developers can qualify for a New Markets Tax Credit for projects over $4 million built in low-income census tracts, or primarily serving or employing the poor.
Companies like Montana and Idaho CDC sell tax credits awarded by the U.S. Treasury to investors. That cash is then used to finance businesses, nonprofits and development to improve parts of communities most in need of the investment.
Between 2003 and 2015, developers used $13.4 million in New Market Tax Credits for three Wyoming projects, according to the New Markets Tax Credit Coalition.
One example of the tax credits’ success is the historic Casper Fire Station, built in 1921. The building fell into disrepair after sitting vacant for nearly 30 years.
Today, the building houses accountants, architects and other professional service firms.
Glaser expects to celebrate many more successes as Montana and Idaho CDC, which will roll out a name change in April, settles into Wyoming.
The organization has financed projects as vastly different as additions to hospitals, construction of a new jerky manufacturing plant, renovation of historic buildings and the raising of a new hotel and conference center.
“Basically, if the project is going to cost more than $4 million, we want developers to get in touch with us about the New Markets Tax Credit,” Glaser said.
It’s not all mega-projects, however. Montana and Idaho CDC offers business loans from $1,000 to $2 million for companies light on collateral and short on equity.
“We have Wyoming folks on our advisory board from around the state, and they’ve helped us identify opportunities,” Glaser said. “We’ve also been actively driving around and visiting companies and economic development specialists for the last eight months or so, so we have an active pipeline of potential projects.”