--News Direct--
Today, over 500 businesses, community development organizations, investors, lenders, nonprofits, trade associations and other organizations sent a letter urging Congress to support and pass the bipartisan New Markets Tax Credit (NMTC) Extension Act of 2025 (S. 479 / H.R. 1103). This legislation would make the NMTC a permanent fixture in the tax code, ensuring continued investment in economically distressed communities across the United States.
The NMTC has a track record of more than 20 years of financing small businesses, health clinics, manufacturing expansions, workforce training programs, broadband expansions, schools, business incubators, disaster relief efforts, and other revitalization projects that strengthen communities and generate long-term economic growth.
Across the country, more than $140 billion in private capital has been invested in businesses with the help of the NMTC, creating over 1.2 million jobs. Over 25 percent of NMTC projects are in rural areas, and most investments are in severely distressed areas that far exceed the statutory requirements for economic distress. More than 2,500 success stories in every state and congressional district can be found on the Coalition’s website.
“The New Markets Tax Credit has proven to be an invaluable resource in rural, urban, and suburban communities around the country,” said Bob Rapoza, spokesman for the New Markets Tax Credit Coalition. “This important financing is needed to create jobs, provide vital services like day care and health care, support small manufacturing businesses, and so many more of the services our communities need. We hope that Congress will continue its bipartisan support for the Credit and make it permanent this year.”
The NMTC, which is set to expire at the end of 2025, provides taxpayers investing in Community Development Entities (CDEs) with a 39 percent credit against federal income taxes over seven years. A CDE is a community development organization, such as a CDFI or private financial institution, with a track record of lending and investing in economically distressed rural and urban communities. In addition to the permanent extension, the legislation would provide $5 billion in annual allocation authority, an inflation adjustment in the out-years, and an exception to the Alternative Minimum Tax for NMTC investments.
About the New Markets Tax Credit Coalition
The New Markets Tax Credit (NMTC) Coalition is a national membership organization founded in 1998 to advocate on behalf of the NMTC program. The Coalition, which includes some 170 members, is managed by Rapoza Associates, a public interest lobbying, policy analysis and government relations firm located in Washington, DC that specializes in providing comprehensive legislative and support services to community development organizations, associations and public agencies.
About New Markets Tax Credit Program
The New Markets Tax Credit (NMTC) was enacted in 2000 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 1.2 million jobs. Today, due to the NMTC, over $140 billion is hard at work in underserved communities in all 50 states, the District of Columbia, Guam, the Virgin Islands, the Northern Mariana Islands, and Puerto Rico. For more information, read: The New Markets Tax Credit: At Work in Communities Across America and visit www.NMTCCoalition.org.
Contact Details
Greg Wilson
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