New Markets Tax Credit Secures Permanent Extension, Boosting Economic Growth in Underserved Communities

The New Markets Tax Credit (NMTC) has been granted a permanent extension through the spending bill H.R.1, marking a pivotal moment for economic development in underserved communities. This bipartisan initiative, established in 2000, has been instrumental in stimulating investment and generating over 1.2 million jobs across the United States. The NMTC's permanence ensures continued support for low-income urban and rural areas, fostering job creation, healthcare expansion, and affordable housing.

Key figures such as Senator Crapo (R-ID), Senator Daines (R-MT), Rep. Jason Smith (R-MO), and Rep. Tenney (R-NY) have been pivotal in advocating for the NMTC. The credit has leveraged over $143 billion in capital investment, demonstrating its effectiveness as a tool for community economic development. A recent analysis by the NMTC Coalition highlights the projected 10-year impact, including $100 billion in capital to underserved regions, 70,000 rural manufacturing jobs, and 17,000 affordable homes.

Phil Glynn, NMTC Coalition Board President, emphasized the significance of this permanence for businesses and investors, ensuring sustained economic growth and prosperity for Americans in need. The NMTC's history of bipartisan support and its recent five-year, $25 billion extension in 2021 underscore its importance as a catalyst for economic revitalization in communities across the nation.