New Markets Tax Credit Can Help With Construction

June 10, 2016
Food processors are using the funds to revitalize low-income and impoverished communities.

Site location decisions are based on many factors, from job training and labor availability to transportation and market proximity. But financial incentives certainly help, and one that more processors are beginning to avail themselves of is the New Markets Tax Credit.

Premium Peanut LLC tapped into that credit when building a $50 million shelling operation that started up in January in Douglas, Ga. It is the first new U.S. shelling plant in 12 years, according to Karl Zimmer, Premium’s CEO, and the more than $6 million in investor tax credits it generated was “absolutely critical,” he says. The facility is expected to stabilize the market for Georgia peanut farmers who previously faced uncertainty over whether there would be a buyer for their crops.

To qualify for the credit, a facility has to be built in an economically distressed area. Other recent food-related projects include an anaerobic digester operated by Foremost Farms in Richland Center, Wis., and Commonwealth Dairy in Brattleboro, Vt. Commonwealth, which produces private-label yogurt for the retailer Aldi, took advantage of the credit when it built its processing plant in 2011 and again in 2013 when the facility was expanded.

Sponsored Recommendations

Troubleshoot: Grittiness in gluten free cookies

Learn how to adjust gluten free cookie recipes for a softer texture.

Clabber Girl: Rising Success

Uncover how Clabber Girl Corporation achieved a remarkable 7% growth and improved manufacturing efficiency by seamlessly integrating Vicinity's batch manufacturing solution with...

Intelligent Blends: Taking Technology to the Next Level

Find out how our friends at Intelligent Blends use VicinityFood and Microsoft Dynamics GP to produce the best coffee around.

Key ingredient: Mother Murphy's Laboratories

Flavorings manufacturer Mother Murphy’s Laboratories integrates front office with production facility — improving operations from initial order to final invoice.