Congressman Led Legislative Effort to Enact President Clinton's New Markets Tax Credit Initiative to Promote Economic Opportunity

WILKES-BARRE - Today, Congressman Paul E. Kanjorski (PA-11) and Wilkes-Barre Mayor Thomas M. Leighton announced a $12 million investment to renovate Wilkes-Barre's Coal Street Park.  The New Markets Tax Credit, an initiative on which Congressman Kanjorski worked closely with then President Bill Clinton to enact into law, created the mechanism to assemble the funding needed for the city to complete this important community renewal project.

"I am incredibly proud to announce the use of the New Markets Tax Credit to provide much needed funding for modernizing Coal Street Park," said Congressman Kanjorski.  "Several years ago, President Clinton and I traveled extensively around the country to determine how to extend economic opportunity to communities in need.  Those investigations ultimately resulted in a bipartisan bill, which I worked to enact into law, to create the New Markets Tax Credit to help reduce the cost of financing community development projects.  Seeing this innovative program put to good use in Northeastern Pennsylvania reminds me of exactly why I fought so hard to make this initiative a reality."

The New Markets Tax Credit is a $19.5 billion federal initiative that provides incentives to attract private investment for business growth and community development opportunities in underserved neighborhoods.  Congressman Kanjorski joined then President Clinton on Air Force One for two different trips around the country in 1999 and 2000 to learn more about the need for the program.  Congressman Kanjorski also spearheaded efforts in the House to draft the bill and enact it into law.

"These $12 million in tax credits are especially important because they are providing money to a project that might not have otherwise received funding during these turbulent times," added Congressman Kanjorski.  "Many states and municipalities, like Wilkes-Barre, have recently encountered difficulties in issuing bonds at affordable rates to fund roads, bridges, schools, and sewer projects, because of the economic downturn.  Fortunately, we have the New Markets Tax Credit to help fill this void and ensure the completion of needed projects, like the Coal Street Park renewal."

The redevelopment project is a $13.7 million initiative that will convert Wilkes-Barre's Coal Street Park into Northeastern Pennsylvania's premier recreation facility.  Located along a major gateway to the city's downtown, a renovated Coal Street Park will transform a blighted parcel into an attractive public facility that will spur further economic growth.  A nonprofit formed by the Pennsylvania Housing Finance Agency, operated as the investment fund manager between the federal government and the City of Wilkes-Barre to facilitate the transfer of tax credits for the project.

"The renovation of Coal Street Park is a great example of how municipalities like Wilkes-Barre, working in cooperation with county, state and federal levels of government and the private sector can provide outstanding offerings for their residents.  Without Congressman Kanjorski's assistance in creating this law and obtaining this New Market Tax Credit allocation, this project would not be feasible given its magnitude," said Mayor Leighton.

During a stop in Chicago on one of the trips, Congressman Kanjorski joined President Clinton and then Speaker of the House Dennis Hastert (R-IL) in agreeing to work together across political parties to create a law to attract investment to economically underserved communities around the country.  Congressman Kanjorski also played an integral role in moving the legislation through the Congress.  President Clinton signed that bill into law in December 2000.

At an event in Wilkes-Barre this past March, President Clinton recognized Congressman Kanjorski's extensive work to create the New Markets Tax Credit and discussed their travels around the country.  Specifically, President Clinton said, "Now, when I was President, Paul Kanjorski carried a bill for me...It is called the New Markets Initiative.  And it was designed to give people incentives to invest in areas which had plenty of good people, but not enough investment and not enough jobs."

Congressman Kanjorski additionally convinced President Clinton and others during the bill's development to rewrite the original targeting procedures used to administer the tax credit.  These formula changes tripled the number of census tracts in Northeastern Pennsylvania eligible to participate in the innovative economic development program.

"My work with President Clinton to create the New Markets Tax Credit has today produced local dividends that will benefit the residents of Wilkes-Barre for many years to come," concluded Congressman Kanjorski.  "Mayor Leighton has also worked very hard to revamp the Coal Street Park, and I am grateful that these tax credits which I helped to create will support a very worthy community project in the City of Wilkes-Barre."

###

Editor's Note:  Click here to view a video of President Clinton speaking in Wilkes-Barre on March 19, 2008, addressing Congressman Kanjorski's efforts to create the New Markets Tax Credit.