Bipartisan Legislation Introduced to Permanently Extend the New Markets Tax Credit
Yesterday Senators Roy Blunt (R-MO) and Ben Cardin (D-MD) and Representatives Tom Reed (R-NY) and Terri Sewell (D-AL) introduced the New Markets Tax Credit Extension Act of 2019 (S. 750 and H.R. 1680). This bipartisan legislation would:
- Make the New Markets Tax Credit (NMTC) a permanent part of the tax code,
- Increase annual NMTC allocation from $3.5 billion to just over $5 billion,
- Index the credit for inflation, and
- Provide alternative minimum tax relief to NMTC investors.
Senators Chuck Schumer (D-NY), Rob Portman (R-OH), Tim Scott (R-SC) and Maria Cantwell (D-WA) joined as original co-sponsors in the Senate; 15 additional members, who come from both parties, joined Reps. Reed and Sewell as original co-sponsors in the House. See the NMTC Coalition’s press release for more information.
NMTC has been a remarkably successful tool for attracting private investment capital to some of the country’s most distressed urban, suburban and rural communities. Between 2003 and 2015, $49 billion in direct NMTC investments leveraged more than $90 billion in total capital investment and generated well over one million jobs. To date, Enterprise has placed $947 million in NMTC allocations, building 9.1 million square feet of retail, schools, health care facilities and other developments that have jumpstarted growth in underserved communities.
Enterprise strongly supports the New Markets Tax Credit Extension Act of 2019 and urges Congress to permanently extend the NMTC to provide stability and certainty to this critical community development tool for low-income communities.
This bipartisan effort is especially important as the NMTC is set to expire at the end of 2019 unless Congress acts to extend the program. The NMTC has been extended numerous times since it was created in 2000; most recently, in 2015, Congress extended program authority for five years. Legislation to permanently extend NMTC also enjoyed strong bipartisan support in the last Congress, with 125 members of Congress from both parties signing on.
Enterprise will work with our partners in the NMTC Coalition to advance the New Markets Tax Credit Extension Act of 2019. Stay tuned to our blog and Community Developments newsletter for updates and advocacy alerts.