New Markets Tax Credit Secures Permanent Extension, Boosting Economic Growth in Underserved Communities
TL;DR
The permanent extension of the NMTC offers investors a stable opportunity to gain tax credits while supporting economic growth in underserved communities.
The NMTC, established in 2000, stimulates investment in low-income areas by providing tax credits, leveraging over $143 billion and creating 1.2 million jobs.
Making the NMTC permanent ensures continued support for underserved communities, fostering job creation, healthcare access, and affordable housing across the nation.
The NMTC's permanence marks a historic step in community development, promising to inject $100 billion into underserved areas and create thousands of jobs.
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The New Markets Tax Credit (NMTC) has been granted a permanent extension as part of H.R.1, the 'One Big Beautiful Bill,' marking a pivotal moment for economic development in underserved communities. This bipartisan initiative, established in 2000, has been instrumental in stimulating investment and fostering economic growth in low-income urban and rural areas. The NMTC Coalition has highlighted the credit's success in leveraging over $143 billion in capital investment and creating more than 1.2 million jobs nationwide.
Senator Crapo (R-ID), Senator Daines (R-MT), Rep. Jason Smith (R-MO), and Rep. Tenney (R-NY) were acknowledged for their leadership in securing the NMTC's permanence. Bob Rapoza, spokesperson for the NMTC Coalition, expressed gratitude towards these lawmakers and all supporters of the NMTC over the years. The permanence of the NMTC provides stability for businesses and investors, ensuring continued support for high-impact projects that prioritize local community needs.
A recent analysis by the Coalition forecasts the NMTC's 10-year impact, including $100 billion in capital to underserved regions, support for over 4,000 businesses and projects, and the creation of nearly 70,000 rural manufacturing jobs. Additionally, the extension is expected to enhance healthcare access through more than 700 new or improved facilities, invest nearly $9 billion in training and education, and increase the housing supply with over 17,000 affordable homes.
Phil Glynn, NMTC Coalition Board President, emphasized the significance of the NMTC's permanence for local businesses and community organizations. The credit's extension ensures that partnerships aimed at aiding Americans in need will persist, fostering prosperity in communities that have historically lacked access to essential capital.
The NMTC, which faced expiration at the end of 2020, received a five-year, $25 billion extension in the Consolidated Appropriations Act of 2021. This latest development, making the NMTC permanent, underscores the program's enduring bipartisan support and its critical role in driving economic development and job creation across the United States.
Curated from News Direct
