2019 Extension Campaign
The New Markets Tax Credit, one of our most effective tools for community revitalization, expires at the end of 2019. Join the effort to extend the NMTC, preserving billions for manufacturing expansions, community health centers, and other important projects in America's hardest hit communities.
Ask your members of Congress to cosponsor bipartisan NMTC extension legislation introduced the House and Senate.
House Extension Legislation (H.R. 1680)
On Tuesday, March 12, 2019, Reps. Terri Sewell (D-AL) and Tom Reed (R-NY) introduced the NMTC Extension Act of 2019 along with 15 of their colleagues, all on the Ways and Means Committee: Representatives Gwen Moore (D-WI), Earl Blumenauer (D-OR), Brian Higgins (D-NY), Suzan DelBene (D-WA), Bill Pascrell (D-NJ), John Larson (D-CT), Daniel Kildee (D-MI), Danny Davis (D-IL), Ron Kind (D-WI), Linda Sanchez (D-CA), Brad Wenstrup (R-OH), Jackie Walorski (R-IN), Mike Kelly (R-PA), Jason Smith (R-MO) and Darin LaHood (R-IL).
To cosponsor, House offices should contact Evan Giesemann (Evan.Giesemann@mail.house.gov) with Sewell or Elise Tollefson (Elise.Tollefson@mail.house.gov) with Reed
Senate Extension Legislation (S. 750)
Senators Roy Blunt (R-MO) and Ben Cardin (D-MD) introduced the New Markets Tax Credit Extension Act of 2019. Senators Blunt and Cardin were joined by four original cosponsors, including Senators Chuck Schumer (D-NY), Rob Portman (R-OH), Tim Scott (R-SC) and Maria Cantwell (D-WA).
To cosponsor, Senate offices should contact Stefanie Dearie (Stefanie_dearie@blunt.senate.gov) with Senator Blunt or Rohan Shetty (Rohan_shetty@cardin.senate.gov) with Senator Cardin.
Fact Sheet: The New Markets Tax Credit Extension Act of 2019
- Introduced in the Senate by Senators Blunt (R-MO) and Cardin (D-MD).
- Introduced in the House by Representatives Terri Sewell (D-AL) and Tom Reed (R-NY).
- Provides an indefinite extension of the New Markets Tax Credit (NMTC).
- Provides an increase in the annual NMTC allocation and indexes the allocation to inflation in future years.
- Provides Alternative Minimum Tax (AMT) relief for NMTC investments thereby ensuring NMTC investors the same consideration under the AMT as is currently provided to investors in many other federal tax credits.
- Senators wishing to cosponsor the Senate bill may contact Stefanie Dearie (Stefanie_Dearie@blunt.senate.gov] ) with Senator Blunt or Rohan Shetty (Rohan_Shetty@cardin.senate.gov) with Senator Cardin.
- Representatives wishing to cosponsor the House bill may contact Evan Geisemann (Evan.Giesemann@mail.house.gov) with Rep. Sewell or Elise Tollefson (Elise.Tollefson@mail.house.gov) with Rep. Reed.
History of the New Markets Tax Credit and How it Works
The NMTC was authorized in the Community Renewal Tax Relief Act of 2000 (PL 106-554) as part of a bipartisan effort to stimulate investment and economic growth in low income urban neighborhoods and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies. The NMTC program attracts capital to eligible communities by providing private investors with a federal tax credit for investments made in businesses or economic development projects located in some of the most distressed communities in the nation – census tracts where the individual poverty rate is at least 20 percent or where median family income does not exceed 80 percent of the area’s median income.
NMTC investors receive a tax credit equal to 39 percent of the total Qualified Equity Investment made in a Community Development Entity with the Credit realized over a seven-year period, amounting to 5 percent annually for the first three years and 6 percent in years four through seven. If an investor redeems the NMTC investment before the seven-year term has run its course, all Credits will be recaptured with interest.
The Impact of New Markets Tax Credit Investments
- Between 2003 and 2015, $49 billion in direct NMTC investments were made in businesses and these NMTC investments leveraged more than $90 billion in total capital investment to businesses and revitalization projects in communities with high rates of poverty and unemployment.
- The NMTC generated well over 1,000,000 jobs at a cost to the federal government of less than $20,000 per job.
- By law, all NMTC investments must be made in economically distressed communities. However, more than 72 percent of all NMTC investments have been in communities exhibiting severe economic distress, including unemployment rates more than 1.5 times the national average, a poverty rate of 30 percent or more, or a median income at or below 60 percent of the area median.
 CDFI Fund’s FY 2018 Agency Financial Report
 NMTC Coalition Estimate
 NMTC Economic Impact Report, NMTC Coalition (December 2017).