“Fiscal Cliff” Legislation Provides Two-Year Extension to Federal Tax Credit Program Proven to Fuel Private Investment in Economically Distressed Communities WASHINGTON, D.C. – The New Markets Tax Credit Coalition (NMTCC) applauds the passage of legislation extending the New Markets Tax Credit (NMTC) for two years. By extending the NMTC, Congress ensures the continued delivery of billions in capital to businesses and revitalization projects in low income communities. “The New Markets Tax Credit has shown that – at a modest cost to the federal government – it generates meaningful economic growth and job creation in economically distressed urban and rural communities throughout the country,” explained Jose Villalobos, New Markets Tax Credit Coalition Board of Directors Chairman and TELACU Senior Vice President. “I commend Congress for ensuring that private sector investment in…
On Tuesday, Newsday published a letter to the editor from New Markets Tax Credit Coalition Board Member Bob Davenport, President of the National Development Council. The letter urges inclusion of incentives like the New Markets Tax Credit and Low Income Housing Tax Credit in a Hurricane Sandy relief package. Below is an excerpt: We should not neglect the substantial assistance needed by the residential, commercial and industrial components of our regional economy — particularly in low-income communities that were struggling before Sandy devastated the region. From small businesses in neighborhood shopping districts to industrial firms employing thousands, and from single-family homes to multifamily rental housing, large gaps exist between the financial resources needed to rebuild and the capital available. Read the whole thing.
On January 1, 2013, the House of Representatives passed The American Taxpayer Relief Act (H.R. 8), by a vote of 257-167. The package includes extension of New Markets Tax Credits for 2012 and 2013 at $3.5 billion in annual credit authority. This was an important step by Congress to ensure the continued flow of billions in capital to credit-starved businesses in our nation's most distressed urban and rural communities. Read more about the New Markets Tax Credit: NMTC Economic Impact Report NMTC: At Work in Communities Across America
Write-up in the Des Moines Business Record: A national coalition of community development organizations and financial institutions is hopeful that new figures released today will help persuade Congress to renew the New Markets Tax Credit (NMTC) program. According to the coalition, the federal program has spurred redevelopment in low-income neighborhoods that has helped to create more than 500,000 jobs nationally and generated more than $8 billion in new federal and state tax revenues between 2003 and 2010. [button link="http://www.businessrecord.com/main.asp?Search=1&ArticleID=19571&SectionID=37&SubSectionID=100&S=1" color="silver"] Read more...>[/button]
New Markets Tax Credit (NMTC) Economic Impact Report Finds that NMTC Has Generated A Significant Number of Jobs, Expanded State and Local Tax Base in Economically Distressed Areas WASHINGTON, D.C.– A report issued today by a coalition of community development organizations and financial institutions details how an expired federal tax credit, awaiting congressional action, has spurred private investment in economically distressed communities to create over 500,000 jobs, generate over $5.3 billion in federal income tax revenue and over $3 billion in state and local taxes – an amount which more than covers the cost of the program as measured in terms of revenue lost by the federal government – and revitalize communities across the country. “While there is ample data on the New Markets Tax Credit’s (NMTC) track record of…
Momentum continues to build for movement of the tax extenders including the New Markets Tax Credit. Yesterday, twelve Freshmen House Republicans sent a joint letter to their leadership urging extension of the New Markets Tax Credit. The letter was circulated by Freshmen Republican Representatives Steve Stivers (R-OH) and Steve Chabot (R-OH). Download the letter List of signers: Rep. Steve Chabot (R-OH) Rep. Bob Gibbs (R-OH) Rep. Chris Gibson (R-NY) Rep. Richard Hanna (R-NY) Rep. Joe Heck (R-NV) Rep. Jaime Herrera Beutler (R-WA) Rep. Bill Johnson (R-OH) Rep. Pat Meehan (R-PA) Rep. Steven Palazzo (R-MS) Rep. Jim Renacci (R-OH) Rep. Bobby Schilling (R-IL) Rep. Steve Stivers (R-OH)
On Thursday, August 2, 2012, the Senate Finance Committee marked up a tax extenders bill. The bill is the product of a compromise between Chairman Max Baucus (D-MT) and Ranking Member Orrin Hatch (R-UT), and it includes a two-year extension of the New Markets Tax Credit at a level of $3.5 billion per year. Senator Coburn submitted an amendment that would have prevented the use of the New Markets Tax Credit in combination with other grant programs and/or tax incentives like federal and state historic tax credits. The amendment failed 14-10. The Committee ultimately approved the tax extenders bill by a vote of 19-5. The House is not expected to take action on tax extenders until after the election. JCT Score of Extenders Bill
House Freshmen Republicans Reps. Stivers (R-OH) and Chabot (R-OH) are inviting other House Republican Freshmen to sign on to a letter addressed to the House leadership that calls for extension of New Markets Tax Credit. The letter does not specify a dollar amount for credit authority but does request an extension at least through 2012. Download the letter If you are in touch with House Republican Freshman, please ask them to sign on to this letter (whether or not they are co-sponsors). Refer them to Jesse Walls with Rep. Stivers (email@example.com), who is the contact person. List of House Republican Freshmen