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
- $35.8 billion in newly authorized NMTC allocation
- Total project financing of $71.3 billion to over 4,300 projects in low-income communities
- Includes $16.8 billion in total project financing to 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:
- Healthcare: 673 projects expanding access to healthcare for 16.7 million patients, including:
- 503 new or renovated federally qualified health centers, free clinics, and VA facilities.
- Childcare: 426 childcare centers and youth programs
- Workforce Training and Adult Education: 593 vocational training programs, community colleges, and higher education expansions
Jobs & Opportunity
- 583k jobs, including 366k permanent, full-time jobs, and 217k construction jobs
- Over 100k manufacturing jobs at nearly 1,700 manufacturing businesses supported through direct loans, technical assistance, or new industrial space.
- Nearly 2,000 small business loans to disadvantaged businesses.
Other Physical Infrastructure
- 199 million sq. ft. of new or improved real estate for businesses and social infrastructure
- 26,741 affordable housing units, most of which are affordable, single-family homes.
Other Benefits of NMTC Permanence
- Increases certainty for communities and investors;
- Allow Credit to keep pace with inflation; and
- 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!
