The Top Ten Things You Should Know about the New Markets Tax Credit
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- 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 expired at the end of 2014, but it is not to late to extend it. Leaders in the House have introduced bipartisan extension legislation (HR 855), and they will soon be joined by the leaders in the Senate.
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