NEW REPORT: The NMTC: At Work in Communities Across America
Paul Anderson
December 10, 2024
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The NMTC Coalition is circulating an organization sign-on letter to Congress urging them to make the NMTC permanent as part of the end of the year legislative package. The letter also urges Congress to provide additional NMTC allocation for Indian Country as well as U.S. Territories, including Puerto Rico.
The sign-on letter, which you can read in the grey box, closes October 17, 2022. Any organization (businesses, trade groups, city governments, Mayors, nonprofits, investors, CDEs) can sign onto the letter using the form below or by emailing Paul Anderson, paul@rapoza.org.
If you’ve already signed-on, please share this page on social media and urge others to sign-on!
Note: The letter is for organizations, rather than individuals. Your name will not be listed on the letter unless you are self-employed or retired.
TEXT OF LETTER
Dear Congress,
The New Markets Tax Credit (NMTC) Coalition and the undersigned organizations urge you to make the NMTC a permanent part of the Internal Revenue Code.
The NMTC has a twenty-year track record of financing small businesses, daycare centers, business incubators, manufacturing expansions, workforce training programs, utility upgrades, schools, healthcare facilities, and other revitalization projects that strengthen communities and generate long-term economic growth. Not only that, during this same time period, the NMTC has created over 1,000,000 jobs that are located in distressed communities across America.
Currently, the 5-year extension is set to expire in 2025. However, 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.
If a permanent extension is enacted, economically distressed rural, urban and tribal communities will benefit from improved services, over $70 billion increased private and public sector investment, and 700,000 new jobs at a federal cost of $3,000 per job. Moreover, permanence increases certainty for communities and investors, allows the NMTC to keep pace with inflation, and diversifies investor markets, helping them maintain efficiency during recessions when the NMTC is needed the most.
We believe it is important and strongly support making the NMTC permanent and expanding its impact. Please ensure no community is left behind and make the NMTC permanent by including the bipartisan NMTC Extension Act of 2021 (H.R. 1321 and S. 456) along with provisions authorizing additional allocation for Tribal Statistical Areas and U.S. Territories as reported by the House Ways and Means Committee on September 15, 2021, in the end of the year legislative package.
Sincerely,
[Organizations]
The New Markets Tax Credit (NMTC) has been instrumental in aiding disaster-stricken low-income communities by providing essential financing for recovery and rebuilding efforts.
Today, the CDFI Fund opened the Calendar Year (CY) 2024-2025 Notice of Allocation Availability. CDEs will have until January 29, 2025 to apply for a record $10 billion in allocation.
$5 Billion investment in economically distressed rural, urban, and minority communities