This week, Congresswoman Terri Sewell (D-AL) and Tom Reed (R-NY) introduced legislation to enhance the NMTC in response to the pandemic. The New Markets Stabilization Act (H.R. 8965), which has the Coalition’s support, provides the following:
- An additional $4.5 billion in NMTC allocation spread over four years;
- Provisions to boost investor demand, including: temporarily allowing investors to carryback NMTCs for five years and exempting the NMTC from the 75 percent General Business Credit limitation for three years, and permanently exempting NMTC investments from AMT consideration.
- Temporary relief from certain debt modification rules for CDEs and QALICBs.