Passage of PATH Act Ensures More, Stable Community Development by U.S. Bank
December 18 2015 - 6:50PM
Business Wire
Final approval today of the Protecting Americans from Tax Hikes
Act will enhance U.S. Bank’s (NYSE: USB) efforts to improve
communities through affordable-housing, renewable energy and
economic development in low-income areas.
The PATH Act, signed into law today by President Obama, included
extensions through 2019 of the New Markets Tax Credit and renewable
energy tax credits, as well as permanent passage of the key nine
percent low-income housing tax credit.
“These tax credit tools are absolutely essential to help ensure
all of our nation’s communities and people are able to reach their
full potential. We have been working with our customers for nearly
30 years to address issues of equity through investments in
affordable housing, economic development and renewable energy. The
president and Congress’ actions enable us to do more towards
creating a world where all people have equal access to the
opportunities at the heart of possibility,” said Zack Boyers,
chairman and CEO of U.S. Bancorp Community Development
Corporation--one of the nation’s most active community investment
tax credit investors.
Boyers is one of the newly announced members of the U.S. Bank
Coaches program. The coaches work with and advise individuals and
groups on community development, charitable giving and a variety of
consumer interests such as cyber security.
The PATH legislation was lauded by Matt Philpott, senior vice
president of USBCDC’s New Markets and historic tax credit business.
Disadvantaged communities often require years of work to pull
together sufficient resources. Short-term extensions of key
financing tools tend to create uncertainty about whether the
resources can be relied on when needed, Philpott said. A five-year
extension of the $3.5 billion in annual New Markets Tax Credit
financing authority is a truly helpful step in the right direction
for creating a sustainable community development future for our
country, he added.
“The New Markets extension allows us to lay plans with our
customers further into the future. Because these economic
development tools are so critical for catalyzing community
improvements that might not otherwise have been funded by
traditional sources, we'll be able to give longer lead-time
projects more certainty. That will, in turn, allow them to make
other necessary commitments and build capacity over a longer period
of time,” Philpott said.
Two renewable energy tax credits that were extended by five
years, phasing down in value each year, will help communities lower
residents’ and businesses’ utility bills by encouraging investment
in solar, wind and other green energy sources.
"U.S. Bancorp recognizes the importance of the environmental
challenges facing our customers and communities, especially in the
areas of climate change. Considering the risks of climate change
and pollution, we recognize the extension of the investment tax
credit will provide long-term predictability to the bank, its
customers and the communities we serve. Growth in the renewable
energy sector has been a bright spot for job creation and we saw
the threat of these credits’ expiration already causing uncertainty
in project developments and raising capital. As an established
investor in renewable energy, and with passage of the PATH Act, we
are well-positioned to bring new capital into the market while
serving our existing customers,” said Darren Van’t Hof, vice
president and head of USBCDC’s renewable energy production
group.
The nine percent low-income housing tax credit becomes permanent
under the PATH Act and will have a positive effect on reducing
housing inequity in every state.
“U.S. Bank has been a long-time advocate of and investor in
affordable housing for low-income people. We recognize how critical
safe and secure housing is in our communities. The inclusion of the
permanent nine percent low-income housing tax credit rate floor
will increase predictability and financial feasibility of
affordable housing at a time when the need continues to grow,” said
Beth Stohr, senior vice president and head of the bank’s affordable
housing group.
With nearly $16 billion in managed assets as of Sept. 30, 2015,
U.S. Bancorp Community Development Corporation, a subsidiary of
U.S. Bank, provides innovative financing solutions for community
development projects across the country using state and federally
sponsored tax credit programs. USBCDC's commitments provide capital
investment to areas that need it the most and have contributed to
the creation of new jobs, the rehabilitation of historic buildings,
the construction of needed affordable and market-rate homes, the
development of renewable energy facilities, and the generation of
commercial economic activity in underserved communities. Visit
USBCDC on the web at www.usbank.com/cdc.
U.S. Bancorp (NYSE: USB), with $416 billion in assets as of
September 30, 2015, is the parent company of U.S. Bank, the
fifth-largest commercial bank in the United States. The company
operates 3,151 banking offices in 25 states and 5,001 ATMs, and
provides a comprehensive line of banking, investment, mortgage,
trust and payment services products to consumers, businesses and
institutions. Visit U.S. Bancorp on the web at www.usbank.com.
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U.S. Bank Corporate CommunicationsShera Dalin,
314-335-3335shera.dalin@usbank.comTwitter @usbank_news
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