NMTC Coalition members advocate for the NMTC Extension Act of 2021, additional investment in BIPOC-owned CDEs, childcare, business incubators, clean-tech industries and investor liquidity
The week of May 10, 2021, will serve as Advocacy Week for the New Markets Tax Credit (NMTC) Coalition. Members of the NMTC Coalition will be contacting Members of Congress about the importance of the NMTC and its permanency during virtual visits with Representatives and Senators. In particular, they will be advocating for the NMTC in regards to President Biden’s American Jobs Plan in hopes of creating effective policy changes.
Specifically, Coalition members are asking their Members of Congress to do the following:
- Enact a permanent extension of NMTC along the lines of the Bipartisan NMTC Extension Act of 2021;
- Provide $15 million in technical assistance support and ensure that at least 5 percent of annual NMTC allocation is available for new and emerging Minority Led Community Development Entities;
- Ensure that at least $500 million in NMTC annual allocation is used to expand investment in Indian Country;
- Promote greater economic growth in economically distressed rural, urban and tribal communities by providing an additional $3 billion in NMTC allocation for investment in child care facilities, clean technology industries, small business incubators and other infrastructure investments; and
- Include provisions to improve investor liquidity.
“Over the last 20 years the NMTC has proven to be an essential tool for creating jobs, improve facilities and services and business and economic opportunity in communities left out of the economic mainstream,” said Bob Rapoza, NMTC Coalition Spokesperson. “There is no better way to enact the American Jobs Plan than through such a program, which will undoubtedly help underserved and marginalized communities for the better. We hope to impress upon Members of Congress the importance of the NMTC and how it can be integrated with the American Jobs Plan during the upcoming Advocacy Week.”
Many of the goals and priorities within the American Jobs Plan directly align with the New Markets Tax Credit – particularly its emphasis on supporting underserved communities. The NMTC is targeted to low-income census tracts in rural and urban communities. Every year, between 75-80 percent of NMTC activity is in high distress communities – with poverty rates above 20 percent, median incomes lower than 60 percent of area median and/or unemployment rates 1.5 times the national average. Over 50 percent of NMTC activity to date is in majority-minority communities.
Supporting the American Jobs Plan goals through expanded use of the NMTC would ensure that infrastructure spending reaches underserved communities and supports historically disadvantaged groups within an established, existing federal program with robust reporting metrics, well-tested programmatic rules and administration, and established agency infrastructure within the Treasury Department at the CDFI Fund.
About New Markets Tax Credit ProgramThe New Markets Tax Credit (NMTC) was enacted in 2000 in an effort to stimulate private investment and economic growth in low-income urban neighborhoods and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies. Since its inception, the NMTC has generated more than one million jobs. Today, due to the NMTC, nearly $110 billion is hard at work in underserved communities in all 50 states, the District of Columbia, and Puerto Rico. For more information, visit www.NMTCCoalition.org.