Mitch Landrieu: “the Renewal Community Program has been a tremendous success in promoting economic growth in my home State of Louisiana.…”

“the Renewal Community Program has been a tremendous success in promoting economic growth in my home State of Louisiana. It has boosted local economies and cut unemployment in areas that need it most. The Department of Housing and Urban Development designated 40 urban and rural areas around the country as renewal communities, under the Community Renewal Tax Relief Act of 2000. Renewal communities can take advantage of wage tax credits, tax deductions, capital gains tax exclusions, and bond financing to stimulate job growth, promote economic development, and create affordable housing. This assistance goes to areas with poverty rates of at least 20 percent, and unemployment rates that are one-and-a-half times the national level. Households in renewal communities have incomes that are 80 percent below the median income of households in their local jurisdictions. One of the most beneficial business incentives under the program is the wage tax credit an employer can receive for hiring and retaining residents of renewal communities. Businesses can receive up to a $1,500 Federal tax credit for every newly hired or existing employee who lives and works in the Renewal Community. Louisiana has four renewal communities. One is in New Orleans and the remaining three cover a large portion of the Central and Northern parts of the State. These three renewal communities have common borders. This is a tremendous benefit for Louisiana, but it also creates some problems.…”