June 18th, 2019, the Ways and Means Subcommittee released a draft of the Taxpayer Certainty and Disaster Tax Relief Act of 2019, a bill that will extend several expired and expiring tax provisions, including disaster relief, energy efficiency, and the New Markets Tax Credit (NMTC). If passed, the provision would provide a $5 billion New Markets Tax Credit allocation for 2020. The proposal would also extend the credit for one year, through 2025, the carryover period for unused New Markets Tax Credits.
“For far too long, Congress has not extended important tax provisions in a forward-looking basis, resulting in confusion and uncertainty for taxpayers. This week, we take the first step forward in untangling this mess,” said Ways and Means Committee Chairman Mike Thompson. “The Taxpayer Certainty and Disaster Tax Relief Act of 2019 extends a number of provisions that expired at the end of 2017 and 2018 and that will expire at the end of this year and the bill is a critical piece of doing right by the taxpayer.”
While this news has thrilled NMTC advocates, many industry leaders including the New Markets Tax Credit Coalition and the Partnership for Job Creation are continuing their efforts to make the NMTC permanent. In March, the New Markets Tax Credit Extension Act of 2019 was introduced in the House and the Senate which will address the impending expiration of the program, due to sunset at the end of this year.
To garner additional support, the NMTC Coalition recently hosted a lobby day to connect industry advocates, project sponsors and community leaders with members of Congress to share the positive impacts of the program. NMTC advocates are also ramping up efforts this spring and summer by taking advantage of the upcoming Congressional recesses. They’re urging supporters to invite members of Congress to visit NMTC projects in their districts to better understand the value and impact of the program.
As of June 20th, the Taxpayer Certainty and Disaster Tax Relief Act of 2019 has been favorably reported out of the full Committee on Ways and Means and is ready for consideration by the whole House.
Click here to read the full press release from the Ways and Means Subcommittee.