Senate Finance Committee Forming Bipartisan Taskforces to Examine Certain Expiring/Expired Tax Provisions, including the New Markets Tax Credit
On May 16, Senate Finance Committee Chairman Chuck Grassley (R-IA) and Ranking Member Ron Wyden (D-OR) announced that the Senate Finance Committee is forming six bipartisan taskforces to examine a total of 42 temporary tax provisions that expired, or will expire, between December 31, 2017 and December 31, 2019. This will include the New Markets Tax Credit (NMTC) which expires at the end of 2019.
In his remarks on the Senate floor, Chairman Grassley noted that the taskforces will be charged to examine the temporary tax policies and to work with stakeholders, other Senate offices, and interested parties “to consider the original purpose of the policy and whether the need for the provision continues today.” The taskforces will be asked “to identify possible solutions that would provide long-term certainty” for each of the 42 expired or expiring tax provisions, which may mean: elimination; a phase-out; a scale-back in exchange for long-term extension or permanency; a short-term extension as is; a long-term extension as is; or permanency. Senator Grassley also noted that the taskforces will complete their efforts by the end of June.
Of the six bipartisan taskforces, the Employment & Community Development Taskforce is expected to consider the NMTC. The Employment & Community Development Taskforce will be co-led by Senators Rob Portman (R-OH) and Maria Cantwell (D-WA), and also includes Senators Tim Scott (R-SC), James Lankford (R-OK), Todd Young (R-IN), Ben Cardin (D-MD), Sherrod Brown (D-OH), and Catherine Cortez Masto (D-NV).
The NMTC attracts private investment capital to some of the most distressed urban, suburban and rural communities. Between 2003 and 2016, the NMTC leveraged nearly $90 billion in capital investments and created over one million jobs in communities with high poverty and unemployment rates. Recognizing the NMTC’s proven track record, Congress retained the NMTC in the 2017 Tax Cuts and Jobs Act, preserving its current authorization through 2019. As a proven public-private partnership that leverages private investment to grow local economies, create jobs and transform neighborhoods, Enterprise believes the NMTC should be a permanent part of the tax code. Enterprise will be submitting comments to the taskforce expressing the demonstrated success and importance of the NMTC and recommending its permanent extension.
Public comments can be submitted to the Employment & Community Development Taskforce at Employment&Development_Taskforce@finance.senate.gov.
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