The Top Ten Things You Should Know about the New Markets Tax Credit
Contact An Agent
- Between 2003 and 2012, investments in NMTC businesses totaled $63 billion, of which 50% was generated from sources other than NMTC direct investments;
- Between 2003 and 2012, NMTC investments generated 750,000 jobs;
- Between 2003 and 2012, NMTC investments generated over 120 million square feet of manufacturing, retail, and community space in low income communities;
- Between 2003 and 2012, the NMTC cost the federal government about $8 billion in lost revenue to generate $63 billion in investment in NMTC businesses – a leverage of approximately 8 to 1;
- 100 percent of all NMTC investments were made in low income communities with poverty rates of at least 20% or median incomes at or below 80% of the area median;
- Over 72 percent of all NMTC investments were made in communities with severe economic distress- poverty rates of at least 30%, incomes at or below 60% the area median, and unemployment rates 1.5 times the national average.
- In 2012 alone, investments in NMTC businesses totaled $8 billion, of which 50% was generated from sources other than NMTC direct investments;
- The New Markets Tax Credit generates economic activity, providing a return on investment to the federal government. In 2012, NMTC-financed businesses generated $984 million in federal tax revenue which more than covered the estimated $800 million cost of the Credit in terms of lost tax revenue in 2012.
- According to a GAO study (2007), 88% of NMTC investors would not have considered investing in a project without the NMTC; and
- The NMTC expires on December 31, 2019. The New Markets Tax Credit Extension Act of 2015 (HR 855), introduced by Reps. Tiberi (R-OH), Neal (D-MA), and Reed (R-NY), would extend the NMTC indefinitely. Senators Blunt (R-MO), Schumer (D-NY), Daines (R-MT), and Cardin (D-MD) introduced S. 591, which is nearly identical to its House counterpart.
Designed by Elegant Themes | Powered by Wordpress