Insurance Commissioner Dave Jones Announces Passage Of Bill To Extend COIN Tax Credit Program
News: 2011 Press Release
Insurance Commissioner Dave Jones today announced that the California State Legislature passed AB 624 which would extend the sunset date on the California Organized Investment Network's (COIN) Tax Credit Program. It was set to expire at the end of this year. The bill, sponsored by the California Department of Insurance and jointly authored by Assembly Speaker John A. Pérez (D-Los Angeles) and Assembly Budget Committee Chair Bob Blumenfield (D-San Fernando Valley), will keep the program going until January 1, 2015. It would also allow the Insurance Commissioner to appoint a COIN Advisory Board to come up with the best ways of increasing insurance industry participation, and sound investments, while providing fair returns to investors and social benefits to underserved communities.
"Earlier this year, I called on insurance companies to help rejuvenate the COIN tax credit program, which was underused in recent years, and insurers answered that call," said Commissioner Jones. "That's why it is so important to extend its life. Through this program, millions of dollars are put to good use in low-income and rural communities throughout the state.
Under the COIN tax credit program, investors invest a minimum of $50,000 in zero interest loans with a Community Development Financial Institution (CDFI) for 60 months. In exchange, the investor receives a 20% state tax credit, which is about a 4.3% annual percentage rate of return. CDFIs have invested, through the COIN program, more than $100 million into California's underserved communities.
Recently, CDFIs across the state have made notable investments through this program, including:
- A mortgage loan for a nonprofit residential alcohol treatment facility;
- Micro-loans of $500 to $5,000 to self-employed business owners;
- A loan for 953 water hook-ups in two small, rural communities; and
- Loans for six child care centers to serve 500 low-income children.
"The COIN program is a tremendous example of how businesses and nonprofit organizations can successfully work together to improve the quality of life for deserving people throughout California," said Commissioner Jones. "It's important to keep the positive momentum going."
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.