California insurers have been awarded $9.3 million in tax credits for making more than $46.6 million in capital investments for underserved communities, the California Department of Insurance announced.
The program, the California Organized Investment Network (COIN) Community Development Financial Institution (CDFI) tax credit, aims to create jobs, build affordable housing and fund other community development projects.
A total of 39 insurers and investors received tax credits for their investments in the second half of 2015, including United HealthCare, MetLife, CSAA Insurance Group and Wells Fargo.
United HealthCare made a $3 million investment in the Enterprise Community Loan Fund to support affordable housing development and Federally Qualified Health Centers for low-income families statewide.
The COIN program was established in 1996 and has invested more than $285 million since its inception. Investors earn a tax credit worth 20% of their investment.
The program “successfully attracts needed investments in California’s underserved communities,” said California Department of Insurance Commissioner Dave Jones. “This program is an extraordinary example of the kind of innovative public-private partnership making a difference for both our communities and the insurance marketplace.”
In 2014, Gov. Jerry Brown signed into law AB 2128, which made some changes to the COIN program and oversight. The law requires insurers with $100 million or more in California premiums to provide information on all its community development investments to the Insurance Commissioner by July 1, 2016. This information also must be made available on the Insurance Department’s Website. The reporting requirements apply to 200 or more insurers operating in California, according to the insurance department.