WASHINGTON, Dec. 22, 2020 /PRNewswire/ -- The
Consolidated Appropriations Act of 2021, passed by the House
and Senate and expected to be signed by the President includes a
five-year, $25 billion annual
extension of the New Markets Tax Credit (NMTC), the largest
extension in the history of the Credit. This allocation will go far
to deliver resources to low-income and marginalized communities,
creating jobs, increasing economic opportunity and improving lives
at a time when the economic frailty of our underserved communities
has never been more apparent.
The NMTC, which faced expiration on December 31 after 20 years of success stories and
strong bipartisan support, is one of only two tax extenders to
receive a five-year extension. By providing $5 billion annually for 2021-2025, the
Consolidated Appropriations Act of 2020 exceeds the $17.5 billion authorization included in the PATH
Act of 2015.
The projected annual impact of $5
billion in New Markets Tax Credits includes an estimated 690
new manufacturing expansions and industrial projects; 275 mixed-use
projects combining housing, commercial, and social services; 255
new or improved health clinics, hospitals, and medical offices; and
775 investments in daycare centers, Boys and Girls Clubs, and other
community facilities. It will also generate an estimated 590,000
jobs.
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. Since then, the New Markets
Tax Credit has financed more than 6,500 projects and created over
one million jobs in all 50 states, the District of Columbia and Puerto Rico.
"As we celebrate the 20th anniversary of the New
Markets Tax Credit this five year extension is absolutely
vital for many of America's urban neighborhoods and rural
communities that have been devastated by the impacts of the global
COVID-19 pandemic and will provide billions of
dollars for high-impact, community revitalization projects
businesses," said Bob Rapoza,
spokesperson for the NMTC Coalition. "No other federal
tax incentive is generally available to economically distressed
rural and urban communities to promote economic revitalization.
All NTMC financing goes to low-income areas, and 80 percent
goes to the poorest communities in America, far exceeding statutory
requirements. We appreciate the leadership of several Members of
Congress in gaining this victory for communities, including
Sens. Roy Blunt (R-MO) and Ben Cardin (D-MD)
and Reps. Terri Sewell (D-AL), Tom Reed (R-NY). We
also are grateful to Ways and Means Committee Chairman Richard Neal (D-MA) who is a longtime supporter
of NMTC."
"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," said NMTC Coalition President
Yvette Ittu, the President of
Cleveland Development Advisors. "Since its inception, the Credit
has delivered well over $105 billion
in flexible capital to farming towns and urban neighborhoods left
outside the economic mainstream. During this difficult time for
many communities that were already struggling, the NMTC provides a
tremendous opportunity to create jobs, spread opportunity and help
put America back on a solid financial footing."
For examples of how the NMTC is making an impact in each state,
see the NMTC Coalition's newly released report, NMTC at Work in
Communities Across America, featuring updated state statistics
sheets on NMTC efficacy and more than 80 Tax Credit success
stories.
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 $105
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
ayrianne@rapoza.org
(202) 393-5225
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SOURCE New Markets Tax Credit Coalition