We once again wish to stress to Congress the importance of the credit to thousands of businesses, state and local government officials, and investors. Below is a letter that urges Congress to increase the credit authority and provide a permanent extension for the New Markets Tax Credit. Please join in the effort to extend NMTC by clicking the following link:
Read the letter:
United State Congress
Dear Members of Congress:
Over the last 30 years, federal spending on community development, measured as a share of Gross Domestic Product (GDP), has fallen by 75 percent. In many economically distressed urban and rural communities, the only capital resource available for revitalization – to finance growing small businesses and manufacturing ventures, construct child care and health care facilities, and invest in new grocery stores or supermarkets – is the New Markets Tax Credit (NMTC).
The NMTC was established in 2000 by a bipartisan coalition of lawmakers. Over the last decade, the Credit has promoted and leveraged private-sector investments in distressed urban and rural communities, spurring economic growth, entrepreneurship, and job creation in areas that need it the most. Since 2003, NMTC investments have directly created over 350,000 jobs at a cost to the federal government of $19,500 per job and leveraged $55 billion in capital investment to credit-starved businesses in communities with high poverty and unemployment rates. To put that number in perspective, during that same period, the U.S. economy created a net of 2.2 million jobs. Moreover, a recent analysis of Department of Treasury data indicates that NMTC-financed businesses and jobs generate enough income tax revenue to pay for the Credit.
The NMTC is an effective and economical tool for attracting private sector capital, creating jobs and business opportunities, and improving the local economies of some of the poorest urban and rural communities in America. Instead of Washington picking winners and losers, project underwriting lies with community development organizations with ties to the communities.
For these reasons, we urge the 113th Congress to make an investment in America’s rural and urban communities by increasing credit authority and providing a permanent extension for the New Markets Tax Credit.