Statement on the Portland Press Herald NMTC Article

On Sunday, April 26, the Portland Press Herald ran the second article in its two-part series on the Maine New Markets Capital Tax Credit. The two articles question many of the aspects and investments of the state program, and also question the efficacy of the federal New Markets Tax Credit (NMTC) program. As the NMTC Coalition’s focus is exclusively on the federal credit, we will confine our comments to the efficacy of just the federal NMTC program. First and foremost, there is a clear record of success when it comes to the federal New Markets Tax Credit. The federal NMTC is a tool that is available to economically distressed communities, promoting revitalization by encouraging the private sector to make investments in areas they otherwise would not, which has resulted in the creation of nearly 750,000 jobs between 2003 and 2013. The Portland Press Herald article—by selectively citing elements from a 2014 report by the U.S. Government Accountability Office (GAO), as well as a flawed report by former Senator Tom Coburn— fails to capture an understanding of what is necessary to rebuild our low income communities and address the challenges of attracting investments in economically distressed areas where the private markets provides insufficient capital. The principal impediment to economic growth in many of our urban neighborhoods and rural communities is the lack of patient, flexible capital. The NMTC is the principal federal tool for increasing the flow of private sector capital to distressed communities. In fact, a 2007 survey conducted by the GAO acknowledged that 88 percent of federal NMTC investors would not have made their investments, if not for the incentive of the Credit. The survey also found that 69 percent of investors had not previously made any investments in these communities, which illustrates that the federal NMTC is doing what was intended—encouraging private investments in distressed communities and neighborhoods to drive economic growth, and to create and retain jobs. Under the federal NMTC, investors receive a modest return, while...

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NMTC supports innovative manufacturing project in Tallahassee, FL

The New Markets Tax Credit continues to serve as an effective tool to create manufacturing jobs. Last year, thanks to $12.5 million in New Markets Tax Credit financing from the Florida Community Loan Fund, construction began on SolarSink, LLC’s innovative new manufacturing facility: SolarSink, LLC will produce heatsink technology and create a solar array on a 5-acre site, utilizing innovative technology developed in conjuction with Florida State University. This technology allows solar energy to be efficiently converted to electricity, ad power produced will be used in the manufacturing facility, other local businesses, and sold to the municipality’s power grid. This project is in a highly distressed census tract with 49% poverty rate and will provide 137 temporary and 55 permanent jobs. Read more about the project at the Florida Community Loan Fund’s website or in a recent issue of Florida Trend, a Florida focused business...

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Neal extols the virtues of NMTC at the small business markup

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Camp and Tiberi plan review of tax extenders in April

Reps. Tiberi (R-OH) and Camp (R-MI) plan to hold a hearing to review individual tax extenders (including the New Markets Tax Credit) in April. The Hill has a story, and you can read their release below: Camp, Tiberi: Review of “Extenders” to Start in April Washington, DC – Today, Ways and Means Committee Chairman Dave Camp (R-MI) and Select Revenue Measures Subcommittee Chairman Pat Tiberi (R-OH) issued the following statement: “Far too many provisions in the tax code are temporary, making it hard for employers to plan, invest and create new jobs for American families. That is one reason why we are committed to comprehensive tax reform. An important part of comprehensive reform is to conduct a thorough review of the various targeted provisions in the Code commonly referred to as ‘tax extenders.’ In 2010, House Republicans led the charge to review these provisions and over 70 (estimated at over $100 billion) were cleaned out of the Code. In 2012, we must again examine these extenders, and the Committee will begin that process after the April recess. We look forward to hearing from interested parties about the merits of these tax policies.” NOTE: The exact date, time, and format of a tax extender hearing has not yet been set and will be formally announced by the Committee at a future date. However, Chairmen Camp and Tiberi expect the date will be in...

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NMTC Morning Update – Senate Colloquy on the Tax Extenders

Yesterday, Senators Reid (D-NV), McConnell (R-KY), and Baucus (D-MT) engaged in a colloquy on the Senate floor where they expressed their support for action on the tax extenders. Senator Hatch (R-UT) also asked for written comments to be appended to the record. The friendly exchange followed a rare moment of bipartisan comity with the passage of the surface transportation bill (S. 1813) by a substantial margin of 74-22. On Tuesday, tax extender provisions were included in several amendments to the bill, but those amendments were ultimately voted down. Read the entire...

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