Statement from New Markets Tax Credit Coalition President, Annie Donovan, on the introduction of the Senate's New Market Tax Credit Extension Act of 2011
FOR IMMEDIATE RELEASE
May 12, 2011
STATEMENT FROM NEW MARKETS TAX CREDIT COALITION
PRESIDENT ANNIE DONOVAN ON THE INTRODUCTION OF THE SENATE’S NEW MARKETS TAX CREDIT EXTENSION ACT OF 2011
Today, the New Markets Tax Credit Extension Act of 2011 was introduced in the Senate by Senators Jay Rockefeller (D-WV) and Olympia Snowe (R-Maine).
The statement, from New Markets Tax Credit Coalition President Annie Donovan, follows:
“We applaud Senators Rockefeller and Snowe for their deep commitment to the New Markets Tax Credit Program and for including important funding provisions in the legislation that will continue the uninterrupted flow of capital investments to our nation’s most distressed communities.
“The New Markets Tax Credit remains one of the most cost‐effective ways to create jobs and drive investment in areas with high rates of poverty and unemployment. This bill would extend this important economic-development program for another five years and increase the annual allocation authority to $5 billion, allowing it to keep pace with the rate of private-sector investment for starved small and medium-sized businesses.
“The demand for Credits continues to rise in light of the current economic climate. Last year alone, $5 billion in New Markets Tax Credit capital was raised swiftly and invested in distressed communities, creating hundreds of jobs and developing manufacturing, retail, and community space in communities starved for investment capital.
“Since the program’s enactment in 2001, 4,000 businesses and projects have been financed with over 90 percent of investments made in the poorest areas in the country. An estimated 500,000 jobs have been created or retained.
“We urge the Senate to quickly pass this extension legislation, which will continue our nation’s economic recovery.”