As it stands, the NMTC is slated to expire December 31, 2009 after the CDFI Fund awards the $5 billion in NMTC allocations for 2009. In order to afford the Treasury adequate time to administer future Credit rounds and ensure there is not a disruption in the market, the New Markets Tax Credit needs to be extended promptly. If not, the program will come to an abrupt halt, adversely impacting community development and job creation efforts across the country. Thanks to the NMTC, private financial institutions, corporations and individuals are moving aggressively to invest in economically distressed communities and identify ‘new markets’ for their community development projects.

Demand for the NMTC program is strong. In the first seven NMTC allocation rounds demand for Credits was staggering with CDEs applying for $179 billion in allocation authority while Treasury had only $26 billion available. Applications for the final $5 billion in NMTC allocations authorized under current law were submitted earlier this year and unless the NMTC is extended the program will come to an end.

We urge Congress to pass legislation to extend the NMTC with $5 billion in annual Credit allocations to ensure that CDEs and their investor partners can continue to provide business and development opportunities in low income communities. We also urge Congress to grant AMT relief to NMTC investors to ensure that the NMTC can compete with similar federal tax credits that already provide AMT relief to investors.