A Decade Later: New Markets Tax Credit Created Half A Million Jobs

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Newly Released Data Sheds Light on Impact of Credit, Underscores Potential Impact of Looming Expiration Washington, D.C. – This year marked 10 years since the first New Markets Tax Credit (NMTC) projects were financed. Data from the program’s first 10 years – including new numbers just released last week—indicates the NMTC has created more than 550,000 jobs and leveraged over $60 billion in capital for economically distressed rural and urban communities. “This new data reinforces what we already know – that the New Markets Tax Credit is having a substantial and meaningful impact on underserved communities throughout the country,” said New Markets Tax Credit Coalition President Jose Villalobos. “In the decade since its implementation, this Credit has put more than half a million people in areas plagued by low incomes…
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Join Reps. Gerlach and Neal at the NMTC Coalition’s Annual Conference

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There's still time to register for the New Markets Tax Credit Coalition's 2013 Annual Conference on December 12th & 13th in Washington, DC at the Hotel Monaco. Two of the NMTC's champions in the House of Representatives, Congressmen Jim Gerlach (R-PA) and Richard Neal (D-MA), will be the keynote speakers at the conference. Congressmen Gerlach and Neal will be joined by Treasury Department officials, including Donna Gambrell of the CDFI Fund, key Congressional staff, industry experts, and NMTC investors. Agenda, registration, and more information
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“New Markets Tax Credit Program Evaluation” (Urban Institute): NMTC Coalition Response

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“New Markets Tax Credit Program Evaluation” (Urban Institute):  NMTC Coalition Response [caption id="attachment_5170" align="alignright" width="300"] Download the Urban Institute's report[/caption] On November 15, 2013, the Community Development Financial Institutions (CDFI) Fund released New Markets Tax Credit Evaluation, a formal evaluation of the first four years of the New Markets Tax Credit (NMTC) program (2003-2007). The Urban Institute’s study found that the NMTC has worked as envisioned, delivering capital to underserved communities and creating a variety of positive outcomes in those communities. As the study’s executive summary states: In its early years, the NMTC program operated as intended—encouraging investments in low-income areas for a diverse range of community- and economic-development projects associated with varying results. The most prevalent results were provision of advantageous financing, real estate development in low-income areas, additions…
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Bipartisan Push Underway to Permanently Extend Federal Tax Credit Encouraging Investment in Economically Disadvantaged Communities

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Letter to House Ways and Means Leadership Calls for Permanent Extension of New Markets Tax Credit Program Washington, D.C. – House Republicans and Democrats are formally asking House Ways and Means Chairman Dave Camp (R-MI) and Ranking Member Sander Levin (D-MI) to take action to permanently extend the New Markets Tax Credit (NMTC), a federal tax credit program that has created hundreds of thousands of jobs in distressed rural and urban communities. If Congress fails to act, the NMTC will expire at the end of this year. The bipartisan letter in support of the NMTC, signed by 70 members of Congress, highlights the importance of the Credit, which provides a modest tax incentive to encourage private sector investment in communities often left out of the economic mainstream. Full list of…
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Tax credit for distressed communities to expire without action: Guest opinion

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By Cam Turner With the end of the shutdown in Washington, D.C., many are speculating tax reform will be a priority. Let’s hope so: The New Markets Tax Credit (NMTC), which helps expand businesses and create jobs right here in Oregon, is set to expire December 31st if no action is taken. During shutdown negotiations, Senate Majority Leader Reid suggested tax reform could be up for discussion as part of a larger budget deal once the government reopens. Congressional tax-writing committees have also resumed efforts to introduce legislation to reform the tax code. However, a new poll by Ernst & Young indicates only 20 percent of tax professionals believe tax reform will be completed by 2014. Read more...
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Forbes on the “cure-all” for disinvested communities

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Be sure to check out today's Forbes article on the NMTC sign-on letter recently sent to Congress urging an extension of the NMTC: If there’s a cure-all for bringing down-and-out communities out of the dumps shouldn’t it be a permanent part of the tax code? That’s the argument of more than 1,200 banks, charities and businesses, led by the New Markets Tax Credit Coalition, in a September letter sent to Congress calling for a permanent credit. The New Markets Tax Credit leverages private sector capital for investment in poor communities with high unemployment to help build commercial and industrial facilities, charter schools, day care centers, and supermarkets. Part of the reason the credit is so important is that federal spending on community development through the Department of Housing & Urban…
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Ways and Means Roundtable on NMTC and LIHTC

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[caption id="attachment_4872" align="alignright" width="300"] Rep. Pat Tiberi, a longtime supporter of the New Markets Tax Credit[/caption] On Thursday, July 18th, the Bob Rapoza (representing the NMTC Coalition) and Michael Novogradac (representing Novogradac & Company LLP) participated in an informal round table briefing on Low-Income Housing Tax Credits (LIHTC) and New Markets Tax Credits (NMTC) for Members of the House Ways and Means Select Revenue Subcommittee on Thursday, July 18th. Members in attendance included: Tiberi (R-OH), Chairman; Neal ( D-MA) Ranking Member; and Reps. Reed (R-NY), Young (R-IN), Linda Sanchez (D-CA), Marchant (R-TX), Renacci (R-OH), Paulsen (R-MN), and Gerlach (R-PA). At the end of the briefing, Rep. Tiberi posed a series of questions on the following topics: (1) waste, fraud, and abuse; (2) whether the credit is too generous; (3) the…
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TAKE ACTION: Sign on to our New Markets Tax Credit support letter

TAKE ACTION: Sign on to our New Markets Tax Credit support letter

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We once again wish to stress to Congress the importance of the credit to thousands of businesses, state and local government officials, and investors. Below is a letter that urges Congress to increase the credit authority and provide a permanent extension for the New Markets Tax Credit. Please join in the effort to extend NMTC by clicking the following link: Sign-on to letter Read the letter: ------------------------------------------- United State Congress Washington, DC Dear Members of Congress: Over the last 30 years, federal spending on community development, measured as a share of Gross Domestic Product (GDP), has fallen by 75 percent. In many economically distressed urban and rural communities, the only capital resource available for revitalization – to finance growing small businesses and manufacturing ventures, construct child care and health care facilities,…
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Baucus/Camp Road Show Heads to Philly Where the NMTC has Made a Significant Impact

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Senator Baucus and Representative Camp have announced their tax reform “road show” is rolling on to Philadelphia. During their last stop, the two Members of Congress who chair the committees tasked with writing tax reform legislation visited a 125-year-old family business that had received New Markets Tax Credit (NMTC) financing. While the businesses they plan to visit on this stop were not financed by the NMTC, it seems a fitting time to discuss the significant impact the Credit has had in struggling neighborhoods in Philadelphia as well as distressed communities throughout Pennsylvania. [caption id="attachment_4733" align="alignright" width="287"] Download the Pennsylvania NMTC Fact Sheet[/caption] The NMTC is a flexible financial tool that encourages private investment in community development in distressed urban neighborhoods and rural communities. The result? Struggling communities experience much-needed economic…
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