New Markets Tax Credit Receives Permanent Extension in Spending Bill

July 03, 2025 at 16:08 PM EDT

--News Direct--

The New Markets Tax Credit Coalition today applauded the passing of a permanent extension for the New Markets Tax Credit (NMTC) in H.R.1, the “One Big Beautiful Bill,” as it heads to the President’s desk for signature.

“We owe a great deal of gratitude to Senator Crapo (R-ID), Senator Daines (R-MT), Rep. Jason Smith (R-MO), and Rep. Tenney (R-NY) for championing the Credit throughout the reconciliation process, as well as to all the members of the House and Senate who have supported the NMTC through the years,” said Bob Rapoza, spokesperson for the NMTC Coalition.

The New Markets Tax Credit, established in 2000 in the Community Renewal Tax Relief Act (P.L. 106-554), is a bipartisan effort to stimulate investment and economic growth in under-invested urban and rural communities. One of the most efficient community economic development tools for low-income communities ever enacted, NMTCs have leveraged an unprecedented level of investment in both rural and urban low-income communities, generating more than $143 billion in total capital investment through public-private partnerships and creating more than 1.2 million jobs across the country.

In a recent analysis, the Coalition projected the 10-year impact of making the NMTC permanent:

Delivering $100 billion in capital to underserved regions;
Providing local support to more than 4,000 businesses and projects;
Generating nearly 70,000 rural manufacturing jobs;
Expanding healthcare choice through more than 700 new or improved facilities;
Preparing workers of tomorrow through nearly $9 billion investments for training and education;
Delivering 435,000 permanent full-time American jobs; and
Increasing the housing supply through more than 17,000 affordable homes, including 6,700 owner-occupied.

“Achieving permanence for the NMTC provides certainty to thousands of businesses and investors and delivers more jobs, business opportunities and capital to high-impact investments prioritized by local communities,” said Phil Glynn, NMTC Coalition Board President. “Our partnerships with local businesses and community organizations across the country can now continue to help Americans most in need to prosper.”

At the close of 2020, the NMTC was set to expire. Instead, it received a five-year, $25 billion extension in the Consolidated Appropriations Act of 2021, the largest prior extension in the history of the tax credit. Since its enactment, the NMTC has been extended eight times, always with bipartisan support, by Congress.

The NMTC program was on track to expire once again at the end of 2025. Leaders from both the U.S. Senate and House introduced the New Markets Tax Credit Extension Act, S.479 and H.R.1103, earlier this year.

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, more than $143 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, visit www.NMTCCoalition.org.