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Washington, DC -- Today, Congressman David Wu announced the awarding of $50 million in New Markets Tax Credits to Ecotrust Forest, LLC. The New Markets Tax Credit Program permits Ecotrust to receive a credit against federal income taxes for making qualified equity investments. In turn, Ecotrust will provide loans to rural businesses in the forest products sector which employ management practices that emphasize strong long-term job creation for economically marginalized rural communities.
"Since the establishment of the New Markets Tax Credit program, I have joined local leaders in efforts to secure these important tax credits to boost investment in our community," stated Wu. "Ecotrust President Spencer Bebee is to be commended for his efforts. These credits will mean jobs and economic security for Oregon families at a time when we need it most."
Ecotrust Forest, LLC recently formed a subsidiary Community Development Entity (CDE) and applied for an allocation of New Markets Tax Credits. Such tax credits are awarded by the Community Development Financial Institutions Fund under the United States Department of the Treasury. Qualifying CDE's must serve low-income communities and maintain accountability to community residents through the establishment of a local advisory board.
Ecotrust Forest, LLC will acquire and manage large parcels of forestland in the Pacific Northwest. Through conservation-based forestry, Ecotrust believes in maintaining and restoring the structural and functional diversity of forests, which leads to more and better jobs and opportunities. Ecotrust's objective is to accelerate the transition from industrial based models of forestry to a sustainable forestry throughout the region. Ecotrust has developed a market initiative which aims to expand the supply of and grow demand for sustainably produced wood products, with a focus on enhancing returns to rural and Native American communities.
"New Markets Tax Credits are perfect mechanisms to stimulate private investments in triple bottom line initiatives designed to improve social, economic and environmental conditions. We were delighted to have bi-partisan support from representatives across the region; this is good news for all of us, particularly rural communities in the Pacific Northwest."
--Spencer B. Beebe, President, Ecotrust
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