Bipartisan Support Grows for Permanent New Markets Tax Credit Extension

The push to make the New Markets Tax Credit (NMTC) program permanent gained momentum at the NMTC Coalition's annual conference, with bipartisan support from key lawmakers and policy experts. The event highlighted the critical role of the NMTC in stimulating economic growth and job creation in low-income urban and rural communities across the United States.

Senator Mark Warner (D-VA) set the tone for the conference with a strong commitment to the program's permanence, stating, "It's time to make the NMTC permanent. Permanent! We are going to bring it home." This sentiment was echoed by other prominent figures, including Senator Steve Daines (R-MT) and Representative Richard Neal (D-MA), underscoring the broad political support for the initiative.

The NMTC program, which has been in operation for over two decades, has proven to be a powerful tool for economic development. Since its inception, it has channeled more than $135 billion into underserved communities, financing over 8,500 businesses and projects, and creating more than 1.2 million jobs. These impressive figures demonstrate the program's effectiveness in addressing economic disparities and fostering growth in areas that traditionally struggle to attract investment.

Despite its success, the NMTC is currently set to expire in 2025. To address this, both the Senate and House have introduced bipartisan bills (S. 234 and H.R. 2539) to make the NMTC extension permanent. Representative Claudia Tenney (R-NY), a lead sponsor of the House legislation, emphasized the ongoing commitment to this cause, pledging to reintroduce the bill next year with her colleague, Representative Terri Sewell (D-AL).

The potential impact of a permanent NMTC extension is significant. It would provide long-term certainty for investors and communities, enabling more strategic and sustainable economic development planning. This stability is particularly crucial as underserved communities continue to face significant challenges in the wake of economic disruptions.

The NMTC Coalition's release of its fifth case study report, "The New Markets Tax Credit: At Work in Communities Across America," further illustrates the program's widespread impact. The report showcases successful NMTC projects from all fifty states, Puerto Rico, and the District of Columbia, providing concrete examples of how the credit has transformed local economies.

Bob Rapoza, spokesperson for the NMTC Coalition, emphasized the timeliness of making the credit permanent: "At a time when the economic frailty of our underserved communities has never been more apparent, we see a tremendous opportunity for our coalition to help create jobs, spread opportunity, and put America back on a solid financial footing."

The drive for NMTC permanence comes at a critical juncture in American economic policy. As the nation grapples with issues of economic inequality and the need for inclusive growth, the NMTC stands out as a proven mechanism for directing capital to areas that need it most. By bridging the gap between underserved communities and private investment, the program has demonstrated its ability to catalyze economic development in a targeted and effective manner.

The bipartisan support for the NMTC's permanence reflects a growing recognition of the program's value in addressing long-standing economic challenges. As lawmakers and community leaders continue to advocate for its extension, the potential for sustained, positive impact on America's most vulnerable communities remains a compelling argument for the program's continuation and expansion.