Capito Would Set Aside Tax Credits for Hard-Hit Coal Towns
U.S. Senator Shelley Moore Capito is introducing legislation to set aside $525 million in federal tax credits for investments in communities hurt by the downturn in coal.
The West Virginia Republican's bill would allocate 5 percent of the federal new market tax credits for 12 states with counties that had significant coal job loss between 2012 and 2015.
According to Capito, the program was enacted in 2000 for projects like mixed-use redevelopments, health care facilities, manufacturing sites and direct business investments.
Over the next three years, $3.5 billion in credits will be allocated annually.
Investors get a 39 percent credit on their federal income tax, taken in increments over seven years.
The 12 states are Alabama, Colorado, Kentucky, Indiana, Illinois, New Mexico, Ohio, Pennsylvania, Texas, Utah, Virginia and West Virginia.