The Case for NMTC Permanence

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

Ten-year score of the NMTC Extension Act of 2021, by JCT

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!
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