Multitude of Organizations Urge Congress to Save Soon-to-Expire NMTC

Nearly 1,000 businesses, investors and organizations call on Congress to expand and make the community and economic development tax credit permanent

WASHINGTON, November 20, 2019 – Today, the New Markets Tax Credit (NMTC) Coalition sent a letter addressed to Congressional leadership, the House Ways and Means Committee and its Chairman, Richard Neal (D-MA), as well as to the Senate Finance Committee and its Chairman, Chuck Grassley (R-IA). The letter urges the permanent extension and expansion of the New Markets Tax Credit (NMTC), along the lines of the bipartisan New Markets Tax Credit Extension Act (H.R. 1680 S. 750).

Nearly 1,000 signatures came from banks and credit unions; nonprofits such as Habitat for Humanity chapters, YMCAs, Boys & Girls Clubs,  food banks and heath care clinics; businesses, ranging from very large businesses to small, family-owned operations; city governments; state and local elected officials and agencies; and associations that represent thousands of members.

“As the New Markets Tax Credit nears its expiration at the end of 2019, we hope Members will take note of its broad support,” said Kermit Billups, President of the NMTC Coalition and EVP, Co-Founder at Greenline Ventures. “The letter was signed by nearly a thousand organizations, representing all 50 states, Washington, D.C. and Puerto Rico, and located in every type of community, from rural areas to urban neighborhoods, and everywhere in between. Why? Because they have seen firsthand the success of NMTC in revitalizing communities, creating jobs, increasing economic opportunity and improving lives.”

Established in 2000 in the Community Renewal Tax Relief Act (P.L.106-554), the New Markets Tax Credit is a bipartisan effort to stimulate investment and economic growth in low-income urban neighborhoods and rural communities. The NMTC was most recently provided a five-year authorization in The PATH Act. (P.L. 114-113) in December 2015. There is great bipartisan support for NMTC in Congress:  32 Senators signed on in support of S. 750, which was introduced by Senators Roy Blunt (R-MO) and Ben Cardin (D-MD); in the House, H.R. 1680 has 109 cosponsors, led by Reps. Terri Sewell (D-AL), Tom Reed (R-NY), and 24 members on the Ways and Means Committee.

The NMTC works by providing a shallow federal tax credit of 39 percent, taken over seven years, for investments made in 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 median. Last year, more than 80 percent of all NMTC investments were in communities exhibiting severe economic distress with extremely low-incomes, high unemployment, or high poverty. Over the past 15 years, communities have come to count on the NMTC as a source of low-cost capital for challenging projects that would not have been possible but-for the NMTC. Since 2003, the Credit has delivered well over $100 billion in flexible capital to farming towns and urban neighborhoods left outside the economic mainstream.

“Despite an exemplary track record in revitalizing some of the poorest communities in our country, financing over 6,000 businesses, hospitals, daycare facilities, and manufacturing expansions and creating some one million plus jobs, the future of the NMTC is in jeopardy ,”  said Bob Rapoza, spokesperson for the NMTC Coalition.  “Without an NMTC extension, many of America’s urban neighborhoods and rural communities, struggling with high rates of poverty and unemployment, will lose access to billions of dollars for high-impact, community revitalization projects. No other the federal tax incentive is generally available to economically distressed rural and urban communities to promote economic revitalization making a permanent extension and expansion of the New Markets Tax Credit vital.” 

For examples of how the NMTC is making an impact in each state, see the NMTC Coalition’s 2019 NMTC Progress Report, State Impact Map or check out its Project Database.

Contact: Ayrianne Parks
[email protected] 
(202) 393-5225

The Letter

November 20, 2019,

Speaker Pelosi, Leader McConnell, Leader McCarthy, Leader Schumer, Chairman Neal, Chairman Grassley, Ranking Member Brady, and Ranking Member Wyden:

The New Markets Tax Credit (NMTC) expires at the end of 2019. We write to urge you to provide a permanent extension and expansion of the NMTC along the lines of the bipartisan New Markets Tax Credit Extension Act (H.R. 1680 and S. 750).

The NMTC is an important source of financing for businesses and community facilities in America’s most economically distressed rural and urban communities. Over the past 15 years, communities have come to count on the NMTC as a source of low-cost capital for challenging projects that would not have been possible but-for the NMTC. Since 2003, the Credit has delivered well over $100 billion in flexible capital to farming towns and urban neighborhoods left outside the economic mainstream. Those investments have generated over one million jobs at a cost to the federal government of less than $20,000 per job.

Without an NMTC extension, many of America’s urban neighborhoods and rural communities, struggling with high rates of poverty and unemployment, will lose access to billions of dollars for high-impact, community revitalization projects. For these reasons, we urge Congress to provide a permanent extension and expansion of the New Markets Tax Credit.

Signed,

Testimonials about the NMTC from signatories

Tina Swain, CEO, Habitat for Humanity of Hillsborough County, Tampa, FL

We have been waiting for the opportunity to participate in an NMTC deal so we can expand affordable housing in Tampa. With more than 40% of our households cost-burdened, we need to act using all tools available to us.

Mari Reed, Director of Operations and Billing, Canyonlands Community Health Care, Page, AZ

We will be able to continue to provide much-needed resources to multiple rural communities in Arizona. In some of the communities we serve, we are the “only” provider in town.

Amy Allison Thompson, Executive Director, Poverello Center, Inc., Missoula, MT

The NMTC allowed us to build a new emergency shelter and soup kitchen for the most vulnerable in our community. Our old facility was a dilapidated mess. Our new building allows us to provide food, shelter, help and hope to all who ask in a dignified facility.

Laurel Robinson, President/CEO, Housing Center of the Palm Beaches, West Palm Beach, FL

An opportunity to bridge the funding gap that is universally present in projects that utilize some manner of public funding.

David Allen, The Tennessee Rural Development Fund, Cookeville, TN

It means opportunity to induce/entice investment into Rural Tennessee to improve the quality of life for our communities.

Thomas Gacse, President/CEO, YMCA of Youngstown, Youngstown, OH

The NMTC was utilized to renovate the Downtown Youngstown YMCA in 2016. The facility opened in 1884 and the renovation was critical to keep the YMCA relevant in an area which is down economically, has issues with chronic diseases, health and wellness and is in trouble academically. The YMCA helps fill the gaps that are necessary for the health, safety and well-being of the kids and families in the City of Youngstown. Most downtown YMCA’s are closing, however, due to the 2016 renovation and the NMTC, the Downtown YMCA, in 2019, has had its best year in a very long time and is transforming lives in the Youngstown community. All Youngstown City School second graders are given free swim lessons at the Y. Just today, we reached an agreement to begin a middle school wrestling program at the Y for the Youngstown City School kids. The Downtown Y is the place where Potential Development Academy, a school for autistic children (over 250 kids), have a gym and swim program to fulfill their physical education requirement. I could go on and on about the impact of the Y on the community but want to let you know of our support to continue the NMTC.

Cesar Plascencia, Public Affairs Officer, Clearinghouse CDFI, Lake Forest, CA

The NMTC program is an opportunity to rejuvenate moderate to low-income communities in America with projects that can only be created with the help of the NMTC program.

David Arnold, Director, Great Lakes Capital, Fort Wayne, IN

The NMTC have literally made redevelopment projects possible that otherwise would not have been feasible. The program has been an important augmentation to state and local public resources in addition to private resources. This combination of investment at all levels ensures that the resources and risks associated with redevelopment projects are equitably shared by all stakeholders. These projects, that would have otherwise not been possible, contribute directly to the job creation and place-making efforts crucial to our long-term community economic development.

Brian Tooley, Chief Financial Officer, Ditsch USA, LLC, Cincinnati, OH

It helped fund a new manufacturing line for our plant, which is located in an impoverished area of our city. This new line will provide additional solid employment opportunities for locals and will help spur growth capabilities beyond the new line

William Sutherland, President, TransPecos Development Corp, San Antonio, TX

It means that 7 mental health centers in rural Texas towns will get substantial funding to expand their currently underfunded mission.

Jim McCormick, Executive Director, Great Falls Rescue Mission, Great Falls, MT

The NMTC mean the world to us as an organization as we couldn’t have built a new Family Center without NMTC funding.

Luis Perez, Controller, Greater Metropolitan Housing Corporation, Minneapolis, MN

We are providing beautiful affordable new homes to those that cannot afford to pay market rate. This is due to the NMTC program.

Nathan Sondgeroth, Executive Director, Vera French Foundation, Davenport, IA

Over time, people with severe mental illness are pushed to marginalized and blighted geographic areas. While this pushing is not done intentionally, it is a natural outcome of the vicious cycle of poverty which can often times accompany the symptoms of mental illness and behavioral disorders. As a community mental health center, Vera French strives to be where our clients need us. NMTC can be the critical funding source allowing community mental health centers to create the facilities and programs our clients need and deserve.

Kathy Kottaridis, Executive Director, Historic Boston Inc., Boston, MA

The New Markets Tax Credit has helped our organization rehabilitate historic buildings for new uses, properties that have been vacant and distressed yet meaningful historically and useable for contemporary needs of Bostonians.

Susan Hay Patrick, Chief Executive Officer, United Way of Missoula County, Missoula, MT

New Market Tax Credits have supported some of the most urgently needed community-strengthening projects in some of the most economically distressed areas of our region, including our 13 Native American reservations. Financially feasible NMTC-supported projects are creating jobs, fostering community economic self-sufficiency, and improving the health and quality of life for countless residents throughout our region. It is absolutely critical that this high-impact, community-revitalizing program be continued.

Cindy Weese, Executive Director, YWCA Missoula, Missoula, MT

New Market Tax Credits provided crucial funding to create a crisis center and emergency housing for domestic violence survivors and homeless families in our community. With NMTC, the facility could not have been built and up to 50 families each night would have no where to sleep except in their cars or tents.

Amy Mallory, Manager, Fund Management, CAHEC, Raleigh, NC

The NMTC program creates jobs, strengthens communities and provide life-changing opportunities to people which would not exist if it was not for the NMTC program. It makes a difference!

William Hurley, Legal Counsel & CEO, Southeast First National Bank, Summerville, GA

We are currently working with manufacturing companies to expand in our tier 1 depressed area through the NMTC incentive program. We hope to see it continue.

Romona Taylor Williams, Executive Director, Montgomery Communities United for Prosperity (MCUP), Duck Hill, MS

Rural officials, businesses, community based organizations and residents face overwhelming challenges to solving the extraordinary socio-economic barriers that impede achieving a healthy quality of life and prosperity. NMTC’s are a significant tool to help overcome such barriers and attract private investments in community and economic development.

Calvin Vinal, President & CEO, Capital For Change, Wallingford, CT

The NMTC provides critical, flexible funding for economic development projects that help stabilize and revitalize lower-income communities. It is a unique capital source that advances projects that otherwise could not be pursued.
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