The America Jobs Plan (AJP) invests $2.3 trillion in critical physical and social infrastructure. The Biden Administration has committed to passing a plan that leaves no community behind – from remote rural areas without broadband to communities of color split apart by previous infrastructure spending. The AJP envisions several promising new programs and initiatives for financing housing, invigorating our clean energy economy, and replacing our electric grid, among other ideas. Many of the goals and priorities in the plan align well existing federal initiatives – in particular, the New Markets Tax Credit (NMTC).
The NMTC has a twenty-year track record of financing daycare centers, community colleges, business incubators, workforce training programs, utility upgrades, schools, healthcare facilities, and other public goods that strengthen communities and generate long-term economic growth. The NMTC leverages private sector resources, stretching each dollar of federal investment further than a traditional grant program. Since 2001, the program has delivered nearly $110 billion in resources to the most distressed communities in America.
Providing additional resources for social and physical infrastructure to low-income communities through the NMTC would help President Biden achieve his goal of passing an inclusive, equitable jobs plan. NMTC projects are financed by community development entities (CDEs) with deep ties to the communities and families they serve. The NMTC encourages a holistic approach to community development. Rather than just financing a single childcare facility or business incubator, NMTC projects often combine commercial goods and a variety of social services into one development. Projects are tailored to meet the needs and priorities of the local communities.
The following paper outlines many of the areas where the NMTC aligns with the AJP: childcare, capital access for domestic manufacturing, veterans services, workforce development, business incubation, schools, broadband, clean water, and transit-oriented development. We provide aggregate NMTC investment data (2001-2020 2Q) and case studies.