Looking Back on the Origins of the NMTC
NMTC Coalition
July 8, 2025
With the NMTC now permanent, take a trip down memory lane.
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]
With the NMTC now permanent, take a trip down memory lane.
The NMTC received a permanent extension in H.R.1, ensuring long-term investment in underserved communities. The credit has spurred $143B in investment and 1.2M jobs since 2000.
On Monday, June 16, 2025, the Senate Finance Committee included a permanent extension of the NMTC within President Trump’s One Big Beautiful Bill.
In 2024, 114 NMTC projects supported over 18,000 jobs at industrial sector businesses, from a small steel fabricator in rural Ohio to a massive pipe manufacturing facility in central Oklahoma.