Last week bipartisan legislation was introduced in both the House and the Senate to permanently extend the New Markets Tax Credit (NMTC), a critical tool for attracting private capital to some of the most distressed urban, suburban and rural communities. Senators Roy Blunt (R-Mo.) and Ben Cardin (D-Md.) introduced the Senate legislation (S. 384), and were joined by Senators Chuck Schumer (D-N.Y.) and Kirsten Gillibrand (D-N.Y.) as original co-sponsors. Representatives Pat Tiberi (R-Ohio-12) and Richard Neal (D-Mass.-1) introduced the House legislation (H.R. 1098), which has 20 additional original co-sponsors. Enterprise strongly supports this bipartisan effort, which is especially important as Congress considers comprehensive tax reform.
Since the NMTC was created in 2000, it has been extended numerous times. Most recently, legislation passed in December 2015 extended program authority for five years. However, without Congressional action, the NMTC will expire in 2019. Earlier this month Enterprise joined roughly 2,000 organizations in signing onto a letter urging Congress to expand and extend the NMTC, which highlights the program’s value in stimulating investment and economic growth in communities that lack access to the patient capital needed to support and grow businesses, create jobs and improve local economies. In addition to making the NMTC a permanent part of the tax code, the new legislation would index the allocation of the credit for inflation and provide alternative minimum tax relief. Read more on the Enterprise blog.