Insurance Commissioner Dave Jones Announces Governor Brown Signs Bill to Extend "COIN" Tax Credit Program
News: 2011 Press Release
Insurance Commissioner Dave Jones today announced that Governor Jerry Brown signed legislation that 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.
AB 624, sponsored by Insurance Commissioner Dave Jones 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 COIN program going until January 1, 2015.
"Extending the COIN program ensures that this successful partnership between insurance companies and community based organizations can continue to provide funding for important projects in underserved communities throughout the state," said Commissioner Jones. "This effort is especially important in these difficult economic times."
"I would like to thank the Governor for signing AB 624 and taking into account the benefits this important program brings," Speaker Pérez said. "This collaborative effort illustrates how creative solutions can bring genuine, real world benefits to our underserved communities. While California continues to pull itself out of the recession, programs like COIN are vital to facilitating that momentum by providing new capital for small businesses throughout the statespurring growth in our neighborhoods, and most importantlycreating more badly needed jobs for Californians."
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 made notable investments across the state, including nearly one thousand water hook-ups in two small rural communities; loans for six child care centers to serve 500 low-income children, and several micro-loans to self-employed business owners, among many other programs throughout California.
"I strongly believe community development investment is good business," said Commissioner Jones. "These investments can provide solid financial returns while bringing much needed capital to low-income communities," said Commissioner Jones.
AB 624 also authorizes 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 low-income and rural communities.
For more information about the COIN CDFI Tax Credit Program, please visit www.insurance.ca.gov/COIN.
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $288 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 $394 million in claims and premiums. Please visit the Department of Insurance web site at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.HELP or 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.