Clinton Calls for New Rural Investments

May 25, 2000

President Clinton has called for new markets tax credits to put $15 billion into new private equity investment for business growth in rural communities and inner cities. Investors receive tax credits over seven years valued at more than 30% in current terms.

The credits will be available to taxpayers who invest in certain privately-managed investment funds and institutions which in turn use the funds to finance businesses in low and moderate income communities.

A 30% credit would be available to investors as 5% for the first three years of investment and 6% for the next four years. Community development corporations, private investment companies and new markets venture capital firms would be eligible to participate.

Clinton and House Speaker Dennis Hastert made the announcement from the White House. In communities where the most need exists, said Hastert, people want to rear children and grandchildren within those communities. "They’d like to have good schools...be able to walk down streets and not have gangs terrorize them," he added.

The president said many people in these communities do not have water or sewer or telephones. "We owe it to them" to provide programs that will bring those services to those communities, he added.