Action Needed to Extend the New Markets Tax Credit
The New Markets Tax Credit (NMTC) expired on December 31, 2011 and it is critical that Congress vote to extend the NMTC as soon as possible to ensure that at least $3.5 billion in NMTC authority is available in 2012.
Unless Congress acts immediately to extend the NMTC – at least through 2012 – investor interest and confidence will surely diminish, capital will go elsewhere, efficiencies achieved in the NMTC market will be lost, and businesses and communities across the country will lose an important source of capital.
The top three ways you can help extend the New Markets Tax Credit:
1. Ask Your Members of Congress to Co-Sponsor the New Markets Tax Credit Extension Act (S. 996/ H.R. 2655)
Senators Jay Rockefeller (D-WV) and Olympia Snowe (R-ME) introduced the New Markets Tax Credit Extension Act of 2011 (bill text) and Representatives Jim Gerlach (R-PA) and Richard Neal (D-MA) introduced an identical NMTC extension bill in the House (bill text).
Both the House and Senate bills would: 1) extend the NMTC for 5 years, through 2016; 2), provide $5 billion in annual NMTC allocation authority; and 3) provide NMTC investments the same Alternative Minimum Tax (AMT) relief currently provided to Low Income Housing Tax Credit, Historic Tax Credit, and Renewable Energy Credit investors.
Nearly 80 Representatives, including 13 members of the House Ways and Means Committee, have co-sponsored H.R. 2655 and 25 Senators have co-sponsored S. 996.
Representatives interested in co-sponsoring H.R. 2655 should contact Lori Prater with Rep. Gerlach (email@example.com) or Kara Getz with Rep. Neal (firstname.lastname@example.org) and Senators interested in co-sponsoring S. 996 should contact Mark Libell with Senator Rockefeller (email@example.com) or Scott McCandless with Senator Snowe (firstname.lastname@example.org).
The following materials will be helpful in your Congressional outreach:
- NMTC Economic Impact Report
- The New Markets Tax Credit: At Work in Communities Across America.
- Fact Sheets on the New Markets Tax Credit Extension Act of 2011 (H.R. 2655 and S. 996)
- State NMTC Profiles highlighting NMTC investment activity by state.
- The 2012 NMTC Progress Report
- The Top 10 Things Congress Should Know About the NMTC
- NMTC Infographic
- Sample Letters Urging Extension (House and Senate)
- Extension Sign-On Letter (over 1,000 businesses, community leaders, nonprofits, investors, etc.
- Target list
- 9.18.12 Freshman NMTC Letter Final
2. Invite Members of Congress to Visit a NMTC Financed Business.
Getting a Member of Congress to visit a NMTC financed business is simply one of the most powerful ways to advocate for the extension. As the November election approaches, Members will be spending more time at home in their states and districts and this is a perfect opportunity to organize a site visit for your Senators and/or Representatives.
Consider extending an invitation when you visit Congressional staff in DC or contract their district office with potential dates and possible NMTC financed businesses that would be of interest.
3. Sign the Coalition’s Letter to Congress AND Share the Letter with Members of Congress.
Join over 1,200 CDEs, investors, business owners, and community leaders − representing all 50 states and the District of Columbia−who have already signed the NMTC Coalition’s letter urging Congress to extend the NMTC immediately.
Once you have signed, we hope you will encourage other NMTC supporters to do the same. Email a link to the letter to your board members, investors, business partners and/or borrowers, local elected officials, community leaders, and others who have seen the impact of NMTC investments in their community first-hand.
The letter is updated as new organizations sign on and the Coalition uses the letter to demonstrate the broad base of support enjoyed by the NMTC.