Last night, the House Ways and Means Committee approved reconciliation legislation that includes a permanent extension and expansion of the NMTC.
The proposed changes were included largely thanks to the leadership of Chairman Richard Neal (D-MA). The Coalition sent a thank you letter to Chairman Neal (attached) yesterday.
Terri Sewell (D-AL) was also very supportive of the NMTC in the markup and has championed the NMTC as the lead sponsor of extension legislation.
- Permanence: Make the NMTC permanent at $5 billion in annual allocation.
- Emergency allocations: Provide an additional $3 billion in allocation to support the economic recovery, including $2 billion in 2022 and $1 billion in 2023. This proposal is along the lines of H.R. 2, passed by the House in 2020.
- Indian Country: Provide $175 million in annual allocation each year – starting in 2022 – for Tribal Statistical Areas. This proposal is also along the lines of H.R. 2.
- AMT relief: Provide an exemption from the Alternative Minimum Tax for NMTC investments (from the NMTC Extension Act of 2021); and
- Additional Allocation for Territories: The legislation would provide an annual allocation of $100 million to territories, including $80 million to Puerto Rico. The House passed similar disaster assistance for territories in 2019.
- Inflation adjustment: The baseline allocation level ($5 billion), the allocation for tribes ($175 million), and the allocation for territories ($100 million) would all receive an annual inflation adjustment starting in 2024.