The U.S. Treasury Department granted an $80 million New Markets Tax Credit (NMTC) allocation for economic development across North and South Dakota last year. Dakotas America, LLC received the tax credit allocation from the U.S. Treasury Department's Community Development Financial Institutions (CDFI) Fund, with South Dakota Rural Enterprise administering the allocation for Dakotas America.

The NMTC program attracts private-sector capital investment into North and South Dakota low-income areas to help stimulate economic growth and create jobs. In 2006, Dakotas America received a $50 million NMTC award that has already begun to show promising results in the state-making a total of $130 million in tax credits available for projects in the Dakotas.

"New Markets Tax Credits can be an effective tool for the economic development community statewide," said Beth Davis, president of SD Rural Enterprise. "It's easy to find out if your community or project is within a census tract that qualifies. Just call Dakotas America at 605-978-2804 or go to the web site at dakotasamerica.com. From there, you're one click away from a map that lets you check your eligibility."

New Markets Tax Credit funding has been used by North Central Farmers Elevator in Bowdle, SD, to develop a new terminal facility. The terminal serves a large region, roughly from north of Pierre well into North Dakota, east to Hoven. Twenty people are employed by the North Central facility, which handles 470,000 bushels of grain. The terminal features a circle rail track to quickly unload uni-trains of grain. Only seven minutes is required to unload 25 tons of product, according to controller Joe Zikmund. The job opportunities presented by the North Central facility have brought new families to Bowdle and boosted school enrollment.

Another grain-handling plant that is having a strong economic impact on a community thanks to NMTC financing is the South Dakota Wheat Growers' McLaughlin Terminal. According to manager Mark Melcher, the terminal added a dozen new full time employees with full benefit jobs. Over half of the employees live in McLaughlin, where the new facility was responsible for a pay differential. Wages increased at the plant, which draws grain from a 100 mile radius.

Melcher said that the McLaughlin plant has doubled its chemical sales thanks to the NMTC-funded expansion. Grain trucks coming to the community have helped other businesses in town, as well, including the local cafe and the Cenex station, which is planning to expand to meet demand.

Another project assisted by the NMTC allocation is Standing Rock Telecommunications, Inc. The 100 percent tribally-owned telecom company used $10 million in loans to build 13 wireless towers to serve 2.3 million acres of tribal land spanning two counties in North and South Dakota.

Standing Rock
Telecom Tower.

Zack Boyers, chairman and CEO of US Bancorp Community Development Corporation, said that Dakotas America has been a strong and effective voice for community development in North and South Dakota.

"Dakotas America has demonstrated the ability to evaluate critical problems in low-income rural communities," Boyers said, "and, just as importantly, to identify new ways to concretely address them, effecting positive outcomes, again and again."

For more information about New Markets Tax Credit or Dakotas America, phone 605-978-2804, e-mail info@sdrei.org or go to www.dakotasamerica.com.

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