The New Markets Tax Credit expires in 2025. Congress has an opportunity to make one of the federal government’s most successful community development programs permanent at the low, ten-year cost of $1.38 billion, according to the Joint Committee on Taxation.¹
Here’s what a permanent NMTC extension (along the lines of the NMTC Extension Act, gets you through 2031:
Flexible Capital to Meet Community Needs
$
0
B
in newly authorized NMTC allocation to 4,300 projects in low-income communities
$
0
B
in total project financing, uncluding $16.8 billion in rural America.
Community Facilities & Social Infrastructure
Financing for over 2,043 nonprofits, community centers, YMCAs, health clinics, youth programs, vocational training centers, and other community facilities. This activity includes:
0
projects expanding access to healthcare for 16.7 million patients, including 503 new or renovated federally qualified health centers, free clinics, and VA facilities
Example:
0
childcare centers, early childhood education facilities, after school programs, and youth social service providers
Example:
0
vocational training programs, community colleges, workforce development initiatives, and higher education expansions
Example:
Jobs & Opportunity
0
K
jobs, including 366k permanent, full-time jobs, and 217k construction jobs
0
K
manufacturing jobs at nearly 1,700 manufacturing businesses supported through direct loans, technical assistance, or new industrial space.
0
smaller loans of under $2 million to small businesses through loan pools
Other Physical Infrastructure
0
M
sq. ft. of new or improved real estate for businesses and social infrastructure
0
affordable housing units, most of which are affordable, single-family homes.
Other Benefits of NMTC Permanence
Increases certainty for communities and investors
Allows credit to keep pace with inflation
Diversifies investor market, helping the maintain efficiency during recessions when the NMTC is needed most.
All at a ten-year cost of $1.38 billion
A cost per job of under $3,000!