The New Markets Tax Credit (NMTC) was designed to increase the flow of capital to businesses and low income communities by providing a modest tax incentive to private investors. Over the last 15 years, the NMTC has proven to be an effective, targeted and cost-efficient financing tool valued by businesses, communities and investors across the country.
The NMTC expires on December 31, 2025. The New Markets Tax Credit Extension Act of 2021 (H.R. 1321), introduced by Reps. Sewell (D-AL), and Reed (R-NY), would extend the NMTC indefinitely. Senators Cardin (D-MD) and Blunt (R-MO) introduced S. 456, which is nearly identical to its House counterpart.