On February 25, Senators Ben Cardin (D-MD) and Roy Blunt (R-MO) and Representatives Terri Sewell (D-AL-07) and Tom Reed (R-NY-23) introduced the New Markets Tax Credit Extension Act of 2021 (S. 456 & H.R. 1321).
The bicameral, bipartisan legislation would permanently extend the New Markets Tax Credit (NMTC) program at $5 billion in annual credit authority, adjusting for inflation. It would also create an exception from the Alternative Minimum Tax (AMT) for NMTC investments. The AMT sets a limit on the tax benefits, and an exception for NMTC investments would encourage investment in the program. The NMTC Coalition estimates that, in total, this legislation would create an additional 590,000 jobs and a variety of housing, commercial, medical, and community facility projects.
The NMTC was set to expire at the end of 2020, but Congress extended the program for an additional five years in the end of year spending package and increased its allocation to $5 billion through 2025. The introduction of the New Markets Tax Credit Extension Act of 2021 highlights the continued bipartisan support for the program in the 117th Congress, and Enterprise applauds Members of Congress for their work to strengthen and permanently extend the program.