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Frances A. McCormick Helps Close First New Markets Tax Credit Deal in Erie Area

Posted on August 17, 2020

Frances McCormick

Frances A. McCormick, Shareholder at Knox Law, helped close the first New Markets Tax Credit deal in the Erie area, helping the Erie Center for Arts and Technology (ECAT) partner with Commonwealth Cornerstone Group on the transaction, which was in excess of $10 million.

As described in a recent press release from Pennsylvania Governor Tom Wolf, the New Markets Tax Credit Program was established by Congress in 2000 to spur new or increased investments in operating businesses and real estate projects located in low-income communities. It permits individual and corporate investors to receive a tax credit against their federal income tax return in exchange for making equity investments in specialized financial institutions called community development entities, such as Commonwealth Cornerstone Group. The program is administered by the U.S. Department of the Treasury.

The deal, which will allow ECAT to update and renovate the former Wayne School building into a community hub for job training, health care, social services and the arts, is expected to be transformational for the neighborhood and beyond. Read more about the building's tenants in the Governor's press release.

Ms. McCormick served as local counsel, working with other legal counsel on the complicated process with a myriad of partner entities and lenders, including The Erie Community Foundation, Northwest Bank, ErieBank and the Erie County Gaming Revenue Authority (ECGRA).

At Knox Law, she focuses her practice in the areas of business & tax law, estate planning & administration, business succession planning, and real estate.

For more information, please contact Sarah Holland.