Press Release

Coalition gathers NMTC stakeholders, releases state statistics

WASHINGTON, Dec. 16, 2019 /PRNewswire/ — New Markets Tax Credit extension legislation, tax policy trends and plans for 2020 were the focus as the New Markets Tax Credit (NMTC) Coalition held its annual NMTC Policy Conference late last week in Washington, D.C. The two-day event featured several members of Congress as keynote speakers, included visits with Congressional offices on Capitol Hill and provided insights from the Treasury Department. Attendees also received updated state fact sheets on the NMTC’s efficacy.

NMTC Coalition President, Kermit Billups, kicked off the conference by welcoming speakers and guests alike. The experienced NMTC practitioner and Greenline Ventures Executive Vice President highlighted recent successes and looked to the future of the NMTC Coalition.

Keynote speakers included Comptroller of the Currency Joseph Otting and CDFI Fund Director Jodie Harris. Panelists included congressional staff, NMTC board and leadership, economic development experts and Treasury Department professionals. Panels held discussions on modernization of the Community Reinvestment Act, small business loan funds, and the latest insights from the Treasury Department. A legislative outlook panel was led by moderator Bob Rapoza, NMTC Coalition spokesman.

A key focus of the conference was the expiration of NMTC. At the end of the year, the Credit expires, and the Coalition has been working with Congress on the legislation to extend and expand the NMTC. In November, nearly 1,000 organizations wrote to the Congressional leadership in support of extension legislation.

Attendees brought their message to the Hill for Congressional visits before settling into the Hart Senate Office Building where they were addressed by Senator Roy Blunt (R-MO), Senator Ben Cardin (D-MD) and Ways and Means Committee Chairman, Representative Richard Neal (D-MA) who discussed NMTC and the future of tax policy.

“We [Congress] have to buckle down and get things done,” said Sen. Blunt, noting that he is working with fellow NMTC bill cosponsor Sen. Cardin and members of the Senate Finance Committee on an extension for the NMTC in the year-end negotiations. He went on to discuss his firsthand experience seeing the NMTC at work. “I went to a grocery store opening in south St. Louis—it was the first grocery store in 50 years, and the NMTC provided the financing.”

“You can’t allow it to expire,” said Sen. Cardin, when addressing the group and noting the chilling impact already seen due to uncertainty over the extension of the NMTC. “Permanency allows you to be able to go out and put together these deals that are not easy to be put together. There is a real desire by both the Democratic and Republican leadership to make sure that an extender package, in fact, passes before the end of the year. We are going to keep fighting for as much as we can get,” he added.

“[The NMTC] has real, positive ramifications for the communities in which you make the investment,” said Chairman Neal as he talked about “why we need to preserve and expand the New Market Tax Credit initiative. I’ve been your champion and I’m going to continue to be your champion,” he added.

The NMTC Coalition also released updated state fact sheets with community testimonials, success stories and state statistics available here.

“Since it was established in 2000, the New Markets Tax Credit has financed more than 6,000 projects and created over one million jobs in all 50 states, the District of Columbia and Puerto Rico,” said Bob Rapoza. “The conference provided practitioners with opportunities to discuss ways to build upon its success, helping low-income rural and urban communities access the capital necessary to grow local economies, expand business opportunities, update worn infrastructure, and make needed services like healthcare, education and childcare available to individuals and families living in distressed areas.”

About New Markets Tax Credit Program

The New Markets Tax Credit (NMTC) was enacted in 2000 in an effort to stimulate private investment and economic growth in low-income urban neighborhoods and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies. Since its inception, the NMTC has generated more than one million jobs. Today due to NMTC, more than $95 billion is hard at work in underserved communities in all 50 states, the District of Columbia, and Puerto Rico. For more information, visit www.NMTCCoalition.org.

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

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,

Browse Signatures

Testimonials about the NMTC from signatories

David Reiling, CEO, Sunrise Banks, St. Paul, MN

The NMTC is a life blood for transformative projects in highly distressed urban core of Minneapolis and St. Paul. We have leveraged the State’s largest public investment into light rail public transit to redevelop the commercial corridor bridging the two cities. NMTC has huge community and job creation impact!!!

Arlo Washington, People Trust Loan Fund, Little Rock, AR

New Markets Tax Credits play a vital role in attracting investments to low-income communities in Arkansas and would not receive investments without them.

Catherine Mickle, Chief Administrative Officer, American Cancer Society, Atlanta, GA

The benefits the American Cancer Society (ACS) receives from the NMTC allow ACS to provide free critical access such as lodging, transportation, and other support services to cancer patients and their caregivers in the Salt Lake City metropolitan area and greater Utah who must travel significant distances for cancer treatments. These services help to remove one significant financial barrier and improve access to the prescribed cancer treatment for our lodging guests. As an added benefit to the community, our guests contribute to the local economy while staying at our facility when receiving treatments.

Cindy Ruminer, Director, Oklahoma Small Business Development Center, Durant, OK

The NMTC program provides the much-needed capital for companies to grow and expand while creating employment opportunities in rural areas across the US. The NMTC program has provided the critical financing needed to increase operations and provide start-up opportunities to over 70% of our OSBDC clients.

Jude Conway, CEO, Ag Ventures Alliance, Mason City, IA

New Market Tax Credits have allowed our agricultural cooperative to develop businesses that grow rapidly and add many jobs to the economy, providing a big return on investment to the nation.

Kate Rowland, Treasurer, The Preston-Knight Foundation, LaGrange, GA

NMTCs provide access for low-income residents, low-income persons and low-income communities to realize their goals and plans. Whether it is growth in the industrial park and access to quality, accessible jobs, increased access to affordable healthcare and workforce training or the rejuvenation of downtown with mixed-use commercial and housing along historic main-street squares, this subsidy has a vital role to play in bringing rural GA back into the economic mainstream. We must retain and reclaim or young population and to do this we must use flexible resources to attract business and develop amenity infrastructure that makes us a vital and thriving community long-term.

Ann Hannan, Administrative Director, Smith NMTC Associates, LLC, St. Louis, MO

Since 2008, Smith NMTC has supported nonprofit developers in utilizing NTMCs to provide critical affordable homeownership opportunities and increased community services in struggling communities. With transactions in over 30 states, this work has resulted in the development of nearly 4,000 homes in low-income communities, as well as community facilities including credit unions, early childhood centers, youth camp facilities and an community empowerment center. Without the NMTC allocation, these projects would lack the needed capital to meet targeted outcomes/schedules.

Danny Herron, President and CEO, Habitat for Humanity of Greater Nashville, Nashville, TN

With the cost escalating of both land and land development in the Greater Nashville area, NMTC has been a critical piece in helping home builders like Habitat for Humanity to continue offering affordable housing to working men and women in our community.

Eddie Lefeaux, CEO-Owner, Westport Lien Services, LLC., Baton Rouge, LA

The NMTC program allows us to reinvest our capital dollars in our company therefore creating more jobs as we grow.

Tim Williams, Executive Director of Operations, Hope House Rescue Mission, Middletown, OH

Middletown residents face a growing need for emergency housing and it was critical that our community step up to the plate and provide safe emergency shelter for individuals and families facing homelessness. Grove Street Shelter could not have been expanded without the NMTC financing that Finance Fund and their partners brought to the table. This allocation and the new facilities for people in housing crisis will be nothing short of life-saving.”

Kji Kelly, Executive Director, Historic Seattle, Seattle, WA

The NMTC has been, and hopefully will continue to be, a major source that enables Historic Seattle to save meaningful places that foster lively communities.

James Reese, President/CEO, Atlanta Mission, Atlanta, GA

It is an incredibly important part of allowing many who serve the opportunity to complete critical projects that greatly impact the lives of those most struggling in our communities.

Robert Elliott, CFO, Monadnock Economic Development Corp, Keene, NH

Because we leverage NMTC funds with Community Development Block Grant Funds and a State Community Development Improvement Program the power of the NMTC funds positively affecting employment at all levels is enhanced tremendously

Ginger Young, CEO, The Childhood League Center, Columbus, OH

But for the NMTC’s, we would have not been able to build a larger facility to serve MORE very young children with developmental delays in our community

Bob Calhoun, CEO, St. Lucie Habitat for Humanity, Ft. Pierce, FL

The NMTC provides the essential economic incentive to bring community development to areas that are not served by the local providers. The multiplier effect that the NMTC provides creates positive economic growth well beyond the scope of the funded program.

Fany Flores, Housing Coordinator, Thriving Mind South Florida, Miami, Fl

Metropolitan cities like Miami are among the most expensive cities to live in. The housing costs are outrageous and there is no such thing as affordable housing. Therefore maintaining a system that it’s sole purpose is to create and preserve affordable housing is imperative for the good of our community. Please I ask you to permanently extend and expand the NMTC. Respectfully,

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.

Sally Hazelip, Head of School, North Florida School of Special Education, Jacksonville, FL

The NMTC helped us complete the funding we needed to build a 32,000 sq.foot lower school campus/urban equestrian center for children who have intellectual and developmental differences. This will enable us to provide academic resources not only to our students but will serve as a therapeutic recreation center to our community. NMTC has been a gift to the Jacksonville Community!

Debra Shoaf, Chief Financial Officer, Atlanta Community Food Bank, Atlanta, GA

The NMTC program is the best example of a public-private partnership. It provides financial incentive and benefit to investors while serving communities that would otherwise never receive these investments. It creates jobs, which stabilizes and improves communities thereby reducing the burden of public assistance in areas without options. It provides benefit to constituents who value public social programs and to those who value self-sufficiency. There are not many programs – or topics – that can have that level of appeal to all interested parties. The program is a win-win-win. It helps America to grow and thrive.

Karen Brooks-Crosby, Dallas City Homes, Dallas, TX

The NMTC facilitates economic development in neighborhoods that traditionally struggle to attract private investment.

Tax Policy Trends and Plans for 2020 Were Focus for Lawmakers, Community Development Leaders at Annual D.C. Policy Conference