NMTC Leaders Applaud 5-Year Extension of Community Development Tax Credit

FOR IMMEDIATE RELEASE NMTC Leaders Applaud 5-Year Extension of Community  Development Tax Credit WASHINGTON, D.C.—Late last night, Congressional leaders and the White House came to an agreement on a tax extender deal, which includes permanency for a few provisions and two- to five-year extension for other expired or expiring tax credits. The New Markets Tax Credit (NMTC) received a long-term extension of five years (2015-2019) at its current level $3.5 billion annually. UPDATE: Congress passed the PATH Act and extended the NMTC for five years. “The federal New Markets Tax Credit has achieved great results since its implementation, creating nearly 750,000 jobs in economically distressed rural and urban communities and leveraging almost $75 billion in capital for businesses, and community services and facilities,” said Bob Rapoza, spokesperson for the NMTC Coalition. “The strong bipartisan support for the federal NMTC in both the House and Senate is a testament to its success in delivering much needed investments for community revitalization projects.” Congressional champions also applauded the extension of the NMTC: “The New Markets Tax Credit Program has a history of success nationwide and this extension is a huge step in the right direction. In Missouri, the NMTC has made a real difference in economically distressed communities, including financing for the first new grocery store in the Pagedale community in 40 years, expanding and helping improve the operation of a number of manufacturing businesses, and filling in the funding gap for the construction of 65 home ownership units in a St. Louis neighborhood with very high unemployment.” —Senator Roy Blunt (R-MO), who introduced New Markets Tax Credit Extension Act of 2015 (S. 591) on February 26, 2015, a bill which would make the NMTC permanent. Senator Blunt was the lead sponsor of a similar bill in the 113th Congress as well. “This long-term extension of the New Markets Tax Credit (NMTC) Program is a major win for community revitalization, job creation, and economic development throughout New York State. The NMTC Program...

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Baucus/Camp Road Show Heads to Philly Where the NMTC has Made a Significant Impact

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. 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 growth and job creation. In Pennsylvania alone, the NMTC has provided more than $855 million in investments and leveraged an additional $743 million from other sources, which accounts for $1.6 billion in total capital going to businesses and economic development projects in the Commonwealth. These investments in Pennsylvania have directly created 27,698 jobs. Project HOME, a community based no-profit launched in 1988, is just one of many examples of NMTC financing at work in Philadelphia. Project HOME along with the City of Philadelphia and the Commonwealth of Pennsylvania are engaged in a collaborative public/private partnership working to address chronic homelessness by expanding the infrastructure of shelters, transitional housing, and social services available to homeless youth and adults. With $1.9 million in NMTC financing provided by LISC and PNC Bank, and a $7.1 million grant provided by private donors John and Leigh Middleton, Project HOME was able to renovate and expand its health clinic and office space and significantly expand the reach of its supportive services. The Philadelphia project’s goal is to eliminate street homelessness in the city by 2017. If successful, Philadelphia would be the first major U.S. city to do so. Through this effort, 1,200 housing opportunities will be developed, including 1,000 drug- and alcohol-free housing opportunities, and...

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CityLink Center opens in Cincinnati to combat poverty

In November of 2012, Cincinnati leaders gathered for the grand opening of the CityLink Center, a comprehensive social services mall which was built with the help of New Markets Tax Credits.

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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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