Multitude of Organizations Urge Congress to Save Soon-to-Expire NMTC

Nearly 1,000 businesses, investors and organizations call on Congress to expand and make the community and economic development tax credit permanent

WASHINGTON, November 20, 2019 – Today, the New Markets Tax Credit (NMTC) Coalition sent a letter addressed to Congressional leadership, the House Ways and Means Committee and its Chairman, Richard Neal (D-MA), as well as to the Senate Finance Committee and its Chairman, Chuck Grassley (R-IA). The letter urges the permanent extension and expansion of the New Markets Tax Credit (NMTC), along the lines of the bipartisan New Markets Tax Credit Extension Act (H.R. 1680 S. 750).

Nearly 1,000 signatures came from banks and credit unions; nonprofits such as Habitat for Humanity chapters, YMCAs, Boys & Girls Clubs,  food banks and heath care clinics; businesses, ranging from very large businesses to small, family-owned operations; city governments; state and local elected officials and agencies; and associations that represent thousands of members.

“As the New Markets Tax Credit nears its expiration at the end of 2019, we hope Members will take note of its broad support,” said Kermit Billups, President of the NMTC Coalition and EVP, Co-Founder at Greenline Ventures. “The letter was signed by nearly a thousand organizations, representing all 50 states, Washington, D.C. and Puerto Rico, and located in every type of community, from rural areas to urban neighborhoods, and everywhere in between. Why? Because they have seen firsthand the success of NMTC in revitalizing communities, creating jobs, increasing economic opportunity and improving lives.”

Established in 2000 in the Community Renewal Tax Relief Act (P.L.106-554), the New Markets Tax Credit is a bipartisan effort to stimulate investment and economic growth in low-income urban neighborhoods and rural communities. The NMTC was most recently provided a five-year authorization in The PATH Act. (P.L. 114-113) in December 2015. There is great bipartisan support for NMTC in Congress:  32 Senators signed on in support of S. 750, which was introduced by Senators Roy Blunt (R-MO) and Ben Cardin (D-MD); in the House, H.R. 1680 has 109 cosponsors, led by Reps. Terri Sewell (D-AL), Tom Reed (R-NY), and 24 members on the Ways and Means Committee.

The NMTC works by providing a shallow federal tax credit of 39 percent, taken over seven years, for investments made in census tracts where the individual poverty rate is at least 20 percent or where median family income does not exceed 80 percent of the area median. Last year, more than 80 percent of all NMTC investments were in communities exhibiting severe economic distress with extremely low-incomes, high unemployment, or high poverty. Over the past 15 years, communities have come to count on the NMTC as a source of low-cost capital for challenging projects that would not have been possible but-for the NMTC. Since 2003, the Credit has delivered well over $100 billion in flexible capital to farming towns and urban neighborhoods left outside the economic mainstream.

“Despite an exemplary track record in revitalizing some of the poorest communities in our country, financing over 6,000 businesses, hospitals, daycare facilities, and manufacturing expansions and creating some one million plus jobs, the future of the NMTC is in jeopardy ,”  said Bob Rapoza, spokesperson for the NMTC Coalition.  “Without an NMTC extension, many of America’s urban neighborhoods and rural communities, struggling with high rates of poverty and unemployment, will lose access to billions of dollars for high-impact, community revitalization projects. No other the federal tax incentive is generally available to economically distressed rural and urban communities to promote economic revitalization making a permanent extension and expansion of the New Markets Tax Credit vital.” 

For examples of how the NMTC is making an impact in each state, see the NMTC Coalition’s 2019 NMTC Progress Report, State Impact Map or check out its Project Database.

Contact: Ayrianne Parks
[email protected] 
(202) 393-5225

The Letter

November 20, 2019,

Speaker Pelosi, Leader McConnell, Leader McCarthy, Leader Schumer, Chairman Neal, Chairman Grassley, Ranking Member Brady, and Ranking Member Wyden:

The New Markets Tax Credit (NMTC) expires at the end of 2019. We write to urge you to provide a permanent extension and expansion of the NMTC along the lines of the bipartisan New Markets Tax Credit Extension Act (H.R. 1680 and S. 750).

The NMTC is an important source of financing for businesses and community facilities in America’s most economically distressed rural and urban communities. Over the past 15 years, communities have come to count on the NMTC as a source of low-cost capital for challenging projects that would not have been possible but-for the NMTC. Since 2003, the Credit has delivered well over $100 billion in flexible capital to farming towns and urban neighborhoods left outside the economic mainstream. Those investments have generated over one million jobs at a cost to the federal government of less than $20,000 per job.

Without an NMTC extension, many of America’s urban neighborhoods and rural communities, struggling with high rates of poverty and unemployment, will lose access to billions of dollars for high-impact, community revitalization projects. For these reasons, we urge Congress to provide a permanent extension and expansion of the New Markets Tax Credit.

Signed,

Testimonials about the NMTC from signatories

Brenda Battey, CFO, Broadway Federal Bank, Los Angeles, CA

Critically important to spur business opportunities in lower income communities in and around the City of Los Angeles.

Brenda Sands, Executive Director, Columbiana Main Street, Columbiana, AL

Our Community is growing .. we have our first new construction in over 20 years. We are nearly completing a new Arts Council / Grand Hall Park… We are the county’s only Designated Opportunity Zone & are home to title one schools. We are on the way to reaching our goals to become an Arts and Entertainment District.. please help our Community to continue growing with this added opportunity, as we are the heartland of rural scenic farms, lake, and outdoor opportunities.

Ana L Martin, Housing Coordinator, Maroso III, Corp, Mayaguez, PR, PR

We want to request this funds to help our those who needed more, elderly community and recover the available housing in PR. We, PR needs this NMTC to develop our projects. Thanks.

Megan Orser, Director of Property Management, Smart Apartment Solutions, Ann Arbor, MI

The NMTC means we are able to provide affordable housing those with the most need in a housing crisis impacting both renters and owners.

Christopher Burnham, President, Development Finance Authority of Summit County Ohio, Development Finance Authority of Summit County Ohio, OH

It helps us bring private investment capital into projects that otherwise would not be financially achievable.

Allison Coleman, Capital Link, Inc., Boston, MA

The NMTC program is a critical resource for financing federally qualified health center facility projects nationally. Without the extension of this important program, many fewer low-income patients will be able to access primary and preventive care, as well as life-saving behavioral health and substance use disorder treatment.

Christy Acord, Executive Director, Elmore County Rural Development, Elmore County, ID

New Market Tax Credit’s are one of the tools that help drive the economic development in the communities that we serve. Preservation of this essential tool for economic development is a key for the future of the economic growth in our expanding region.

Peter Mello, Managing Director and coCEO, WaterFire Providence, Providence, RI

New Market Tax Credits were critically important to WaterFire Providence in creating the WaterFire Arts Center which is transforming the underserved Valley/Olneyville neighborhood of Providence into a vibrant arts corridor.

Phil Dingeldein, VP, dphilms, Rock Island, IL

The NMTC is an important source of financing for businesses and community facilities in America’s most economically distressed rural and urban communities.

Richard Jennings, Managing Director, Mascoma Community Development, Hanover, NH

The most powerful tool to generate positive community and economic development in distressed communities throughout the Nation.

Louise Cohen, Chief Executive Officer, Primary Care Development Corporation, New York, NY

The NMTC program has enabled PCDC to finance 177 projects for its community health center clients throughout the U.S. $248 million in awards to PCDC have supported over $1.1 billion in projects that have created or retained 5,800 permanent and 5,000 construction jobs in urban and rural under-served communities and enabled safety net community based providers to serve more than 1 million patients annually nationwide with high-quality health care and integrated services, including mental health and substance use treatment.

Jaene Miranda, President & CEO, Boys & Girls Clubs of Palm Beach County, West Palm Beach, FL

Thanks to the NMTC we will be able to provide a career readiness center for thousands of youth in the Belle Glade, Florida community – giving hope for a brighter future.

Steve Siler, President, Mercy Care Foundation, Atlanta, GA

We’ve been the beneficiaries of one development project that used NMTCs to assist us in funding our project. We would have had to scale back our project had we not had the NMTCs, which would have meant serving thousands fewer patients over the nearly 10 years our health clinic has been in service. Simply put, this program has relieved more misery and lengthened and saved lives.

Kristin Stearns, CEO, Lakeshore Community Health Care, Sheboygan, WI

Through the NMTC program our organization has been able to increase access to primary medical, dental, and behavioral health care. Serving over 9,000 patients last year.

Mills Rooks, CEO, South Georgia Industrial Development Fund, LLC, Albany, GA

We are a CDE for NMTC purposes, though have not yet received an allocation. But, we are located in south Georgia in the center of several counties that are defined as “severe distressed/non-metropolitan”. We feel that we are in a unique environment to attract job creating industries to LICs with the help of NMTCs. The CDFIFund.gov should have the NMTC program extended, and the allocation amount increased (as it is typically oversubscribed in excess of 3:1).

Jennifer Bransfield, COO and Genera Counsel, Chicago Neighborhood Initiatives, Chicago, IL

CNI serves neighborhoods on Chicago’s South Side. We have leveraged over $350 million in new industrial, retail, and recreational development in a single census tract in Pullman through the New Markets Tax Credits program. Since the first NMTC investment in 2013, violent crime in the neighborhood has dropped 52% and jobs in the community have increased by 43%.

Steve Saltzman, CEO, Charleston LDC, Charleston, SC

Strongest anti-displacement tool available, allowing people in neighborhoods suffering from disinvestment to acquire assets on their balance sheets and build infrastructure in their communities that would otherwise be impossible but for NMTC.

Will Shurtleff, First Vice President, BancorpSouth, Jackson, MS

The NMTC allows projects in distressed communities that may not otherwise be feasible to not only be completed, but thrive. The NMTC subsidy allows public/private partnerships to provide much-needed capital to create and retain jobs, provide healthcare and goods and services to populations in rural communities that have historically not had access to such.

Chris Naumann, Executive Director, Downtown Bozeman Partnership, Bozeman, MT

The NMTC credit’s are one of the only economic development tools in Montana that catalyzes projects that create jobs and critical socio-economic services for our citizens most in need.

Joni Robertson, CAO, Golden Valley Natural, Shelley, Shelley, ID

The NMTC program has provided jobs and benefits to our community. It has been a huge benefit and has benefited many families. It has provided jobs and given employees an opportunity to learn new skills and have opportunities for job advancement within our organization. It has also allowed these employees to become more marketable and gives them future opportunities they would not have had. It has been a great benefit to our company and our community.
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