Tax credits awarded to insurers for investing $23.2 million in California’s underserved communities
News: 2014 Press Release
SACRAMENTO, Calif. - Insurance Commissioner Dave Jones announced $4.6 million in tax credits awarded to insurance companies or insurance groups that made more than $23.2 million in capital available to Community Development Financial Institutions, which bridge the growing gap between the loans and services available to the economic mainstream and those offered to low-income people and communities.
Among others, tax credit allocations were awarded to:
- Allianz Insurance Group for its $1 million investment ($200,000 tax credit allocation) into ProAmérica Bank. This investment is being used as a loan to Clinicá Monsignor Oscar A. Romero, a nonprofit providing comprehensive medical services to low income men, women, and children living in Los Angeles County. The project will result in 17 jobs.
- CSAA Insurance Group, a AAA Insurer for its $10.7 million investment ($2.14 million tax credit allocation) into Enterprise Community Investment. The investment is being used to rehabilitate two affordable rental housing properties located in Morgan Hill and Oakland and will create more than 300 jobs in the first year.
- UnitedHealthcare for its $11.5 million investment ($2.3 million tax credit allocation) into Enterprise Community Investment. This investment is being used to acquire and rehabilitate Connections Housing in downtown San Diego, a low-income housing project, to provide residents access to supportive services, including mental healthcare, a medical clinic, substance abuse treatment, legal aid, and other services. The project is expected to create 200 jobs in its first year.
"I want to thank Allianz Insurance Group, CSAA insurance Group and UnitedHealthcare for dedicating part of their investment portfolios to support these important community investments," said Commissioner Jones. "Being a socially-responsible insurance company is meaningful to the regions they serve."
The awards were presented at the California Organized Investment Network's Inaugural Investment Summit on September 17, 2014, at the Federal Reserve Bank in San Francisco with more than 100 insurance, community, and financial leaders in attendance.
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Community Development Financial Institutions (CDFIs): There are $18 million in the California Organized Investment Network's (COIN) CDFI tax credits available in 2014 to support $90 million in private investments (representing a 20 percent tax credit for investors). In the first cycle of the 2014 COIN CDFI tax credit program, COIN awarded a total of $8.8 million in tax credits for $44 million in tax credit investments. Insurers made $23.2 million in tax credit investments and received $4.6 million in tax credits allocations. The second cycle is scheduled to open on October 15, 2014, and runs through November 15, 2014.
On October 7, 2013, California Governor Jerry Brown signed into law Assembly Bill 32 (Pérez), a bill that authorized COIN to issue up to $10 million in tax credit awards annually, under COIN CDFI tax credit program.
For more information about the COIN CDFI Tax Credit Program, visit http://www.insurance.ca.gov/0250-insurers/0700-coin/CDFITaxCredit.cfm.
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.