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

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.

David Snedeker, Executive Director, Northeastern Vermont Development Association, St. Johnsbury, VT

In the many low-income communities of our rural 3-county region of Vermont, the NMTC program is essential for any large economic development projects. The program is able to bring capital to projects that would otherwise not be available.

Marshall Spivey, CFO, Premium Peanut, Douglas, GA

The NMTC loans have assisted Premium Peanut with creating 200-210 direct jobs and 50-60 indirect jobs in our rural community in South Georgia. This type of job creation is difficult to generate in rural areas and financing is difficult to obtain for brand new/start-up businesses. Premium Peanut is a co-op model business owned by 370+ farming families that have had several difficult financial years in a row due to weather and low commodity pricing. Premium Peanut has also delivered back over $11 million dollars in dividend payments to these farming families in the last two years. Many lives and families have been impacted by the jobs and profits generated by Premium Peanut.

Allen Patterson, CEO, Community Healthcare Center, Wichita Falls, TX

We have very compelling capital projects that will become realities if NMTC is extended and expanded. Please do so.

Catherine Auger, Executive Assistant, Southwest Community Health Center, Bridgeport, CT

We provide medical, dental and behavioral health services to the underserved. Please make permanent these funds. Thank you.

Mary Stranahan, founder of Good Works Ventures, Good Works Ventures, Missoula, MT

The NMTC has allowed for building projects to be built that might not have happened without the tax credit. It has provided jobs that might not have been created and allowed communities to benefit from these projects.

Janet Laatsch, CEO, Greater Seacoast Community Health, Somersworth, NH

This has allowed us to make capital improvements allowing us to provide additional services to our under-served patients.

Jackie Weeks, Tribal Operations Officer, Fort Peck Assiniboine and Sioux Tribes, Poplar, MT

The NMTC provided a funding gap allowing completion of project plans. For the Fort Peck Tribes it meant installation of a parking lot, exterior lighting, stormwater drainage, and furnishings for a building that consolidated social services, education, and manpower development providing services to low-income people on Fort Peck Reservation.

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.

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.

Oscar Bashualdo, Controller, Paterson Habitat for Humanity, Paterson, NJ

Helps us to better serve families needing a decent home in the most distressed areas in our neighborhood.

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.

Shelly Butterfield, Tax Manager, Monogram Foods, Memphis, TN

The NMTC program has allowed our company to create and preserve jobs in rural areas that would have had high unemployment without our investments there.

W. Patrick Goggles, Executive Director, Northern Arapho, Ethete, WY

[The NMTC improves] access to capital for the development of essential health, human and social service facilities in rural communities.

Catherine Mickle, Chief Administrative Officer, American Cancer Society, Atlanta, GA

The benefits the American Cancer Society (ACS) receives from the NMTC allow ACS to provide free critical access such as lodging, transportation, and other support services to cancer patients and their caregivers in the Salt Lake City metropolitan area and greater Utah who must travel significant distances for cancer treatments. These services help to remove one significant financial barrier and improve access to the prescribed cancer treatment for our lodging guests. As an added benefit to the community, our guests contribute to the local economy while staying at our facility when receiving treatments.

Eddie Lefeaux, CEO-Owner, Westport Lien Services, LLC., Baton Rouge, LA

The NMTC program allows us to reinvest our capital dollars in our company therefore creating more jobs as we grow.

Joni Robertson, CAO, Golden Valley Natural, Shelley, Shelley, ID

The NMTC program has provided jobs and benefits to our community. It has been a huge benefit and has benefited many families. It has provided jobs and given employees an opportunity to learn new skills and have opportunities for job advancement within our organization. It has also allowed these employees to become more marketable and gives them future opportunities they would not have had. It has been a great benefit to our company and our community.

Joseph Falkson, Senior Managing Director, Native American Capital, LLC, Reston, VA

The NMTC program has been a major force in assisting poor Native American communities throughout the Nation with funding significant economic development projects that would not have been possible without this highly effective program.

Nancy Townsend, Redevelopment Director, Fort Wayne Redevelopment Authority, Fort Wayne, IN

The NMTC closes the funding gaps on Projects that enhance opportunities for people here in Fort Wayne. We have used these credits to support youth (through Boys & Girls Club), provide shelter and services to homeless; support to mentally, job training for under skilled and under employed and many many other things. Without these credits, many of these projects would not have closed.

Danny Herron, President and CEO, Habitat for Humanity of Greater Nashville, Nashville, TN

With the cost escalating of both land and land development in the Greater Nashville area, NMTC has been a critical piece in helping home builders like Habitat for Humanity to continue offering affordable housing to working men and women in our community.
RSS
Facebook
Twitter
YouTube