NASHVILLE, Ark. (11/25/13)--Hope Enterprise Corp. and Hope CU, Jackson, Miss., (HOPE) have committed $8 million in New Markets Tax Credit (NMTC ) allocation to Husqvarna Group's Nashville manufacturing facility.
The funding will be used to purchase new machinery, which will bring the plating and honing process in-house and will be more efficient and environmentally friendly than commonly used methods.
The new plating and honing line will create 22 new jobs at the 1,200 employee facility.
Husqvarna Group operations in Nashville support more than 800 additional jobs in Southwest Arkansas.
"The jobs supported by this investment offer good wages and benefits, and generate a tremendous economic impact in southwest Arkansas," said HOPE CEO Bill Bynum. "Companies like Husqvarna are vital to a prosperous community, which makes it a perfect fit for our mission, and for our New Markets Tax Credits."
The NMTC allocation from HOPE is being paired with a $2 million allocation from Chase New Markets Corp. to support an equity investment by Chase Community Equity (JPMorgan Chase Bank, N.A.) into the $10 million equipment purchase and installation.
Credit unions are among those eligible to participate in the NMTC, which seeks to spur the investment of new private sector capital into low-income communities. To do so, it permits individual or corporate taxpayers to receive a credit against federal income taxes for making Qualified Equity Investments. Those investments must be made in designated Community Development Entities.
The U.S. Treasury's Community Development Financial Institutions Fund oversees the tax credit program and allocates the tax credits annually through a competitive application process.