Sign-on in support of a permanent, expanded NMTC

The NMTC Coalition is circulating an organization sign-on letter to the White House and Congressional Leadership urging them to expand the New Markets Tax Credit and make it permanent. The letter urges the adoptions of the provisions passed by the House Budget Committee last month that would authorize additional NMTC allocation for Indian Country, U.S. territories, and economic recovery.

Please sign your organization onto our letter, if you haven’t already. We would also appreciate if you would circulate the letter to businesses, nonprofits, community leaders, NMTC practitioners, and anyone else who supports the NMTC. A copy of the letter text is available below. To sign on, fill out the form below (or use this alternate form if you run into any issues).

Sign-on

Letter text:

The Honorable Joseph Biden
President of the United States
1600 Pennsylvania Avenue, NW
Washington, DC 20500

The Honorable Nancy Pelosi
Speaker, U.S. House of Representatives
H-232 The U.S. Capitol
Washington, DC 20515

The Honorable Charles Schumer
Majority Leader, U.S. Senate
S-221 The U.S. Capitol
Washington, DC 20510

Dear President Biden, Speaker Pelosi, and Leader Schumer:

The New Markets Tax Credit (NMTC) Coalition and the undersigned individuals and organizations urge you to maintain the low-cost, high-impact NMTC enhancements as passed by the House Budget Committee.
The NMTC-provisions included in the current House Budget Committee package would make the Credit a permanent part of the Internal Revenue Code, providing many benefits to our communities.

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 provisions included in the House Budget Committee legislation, as passed by the House Ways and Means Committee, make important improvements to the underlying NMTC program, including:

• Permanence: Make the NMTC permanent $5 billion in annual allocation;
• Expand the Investor Base: The legislation provides an exemption to the Alternative Minimum Tax for NMTC investments, allowing more investors to participate and increasing the program’s efficiency
• Emergency allocations: Provides an additional $3 billion in allocation to support the economic recovery, including $2 billion in 2022 and $1 billion in 2023;
• Indian Country: Provides $175 million in annual allocation each year for Indian Country;
• Additional Allocation for Territories: The legislation would provide an annual allocation of $100 million to territories, including $80 million to Puerto; and
• 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.

The Joint Committee on Taxation estimates the ten-year cost of the NMTC provisions at only $2.66 billion over ten years.

If enacted, economically distressed rural, urban and tribal communities will benefit from improved services, increased private sector investment, and 700,000 new jobs at a federal cost per job of under $4,000.

We believe it is important and strongly support making the NMTC permanent and expanding its impact. Please continue to support the NMTC legislative enhancements included in the House Budget Committee’s reconciliation bill to ensure no community is left behind.

Sincerely,

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest