WASHINGTON, D.C. – U.S. Senator Shelley Moore Capito (R-W.Va.) is reintroducing legislation to spur investment in communities facing significant economic challenges due to coal industry job losses.
The Creating Opportunities for Rural Economies (CORE) Act encourages new development by using New Markets Tax Credits to invest in underserved, low-income communities.
“States like West Virginia have suffered from severe job loss in the coal and other industries. These distressed regions of the country need a pathway that will create new jobs, spur business investment, and strengthen struggling economies,” said Senator Capito.
“I have teamed up with economic development experts to conduct a thorough analysis of our state’s economy, including how West Virginia is utilizing federal incentives for economic and community development. With my CORE Act, there is a tremendous opportunity to generate new funding that will open doors for these communities, prompt much-needed economic development and diversify our state’s economy,” she continued.
The New Markets Tax Credit Program was enacted in 2000 to spur investment in low-income regions in projects such as mixed-use redevelopment, health care facilities, manufacturing facilities and direct investments in businesses. Investors receive a 39 percent tax credit over a seven year period in return for investing in these communities.
Since 2000, more than $40 billion has been invested across the nation through new market tax credits. In that time period, only 17 projects totaling just $97 million have been invested in West Virginia, far less than neighboring states. To boost investments in states like West Virginia, the CORE Act sets aside 5 percent annually to support projects initiated in low-income, underserved communities.
This is the first piece of legislation Senator Capito has introduced in the 115th Congress. Congressman Evan Jenkins (W.Va.-3) is introducing companion legislation in the House.
“Our coal communities deserve our support and investment as they work to diversify their economies and create good-paying jobs. The CORE Act will provide incentives for new businesses and industries to move to coal communities in West Virginia and invest in our people. I want to thank Senator Capito for her leadership in the Senate on this important issue and legislation. By diversifying our economy and supporting our coalfields, we will create new opportunities for West Virginians here in West Virginia,” said Congressman Jenkins.
Click here to view a one-pager on the CORE Act.
Click here to view the bill text.