News New Markets Tax Credit

NMTC Permanency Bills Introduced in House and Senate

Written By: NTCIC

On February 25th, Reps. Terri Sewell (D-AL) and Tom Reed (R-NY), as well as Sens. Ben Cardin (D-MD) and Roy Blunt (R-MO) introduced the New Markets Tax Credit (NMTC) Extension Act of 2021 (H.R. 1321/S. 456). The legislation would make the New Markets Tax Credit (NMTC) permanent at $5 billion in credit allocation a year and provide an exception from the Alternative Minimum Tax (AMT) for NMTC investments. The bill currently has 23 co-sponsors in the House.

“The COVID-19 pandemic has laid bare the historic disinvestments in our rural and underserved communities. Now more than ever, it is critically important that our communities have permanent access to the New Market Tax Credit as a tool to facilitate investments in local businesses and community development projects as we recover from our economic crisis,” said Rep. Terri Sewell in a press release. “The NMTC remains crucial to the creation of job growth and opportunity in Alabama’s 7th Congressional District, and I’m proud to introduce this bipartisan bill to ensure our most underserved communities are not left behind.”

Since its authorization, over $55 billion in direct NMTC investment has created well over 1,000,000 jobs. These NMTC investments leveraged nearly $110 billion in capital from other sources for businesses, healthcare centers, manufacturing expansions, and revitalization projects in communities with high poverty and unemployment rates. You can view the entire House version here.

Ask your members Senators and Representatives to cosponsor this bill to make this important incentive permanent in the tax code.