The New Markets Tax Credit (NMTC) program, a vital tool for stimulating economic growth in underserved communities, is gaining increased bipartisan support for permanent extension. At the recent NMTC Coalition's annual conference, prominent lawmakers and tax policy experts emphasized the program's importance and the need for its continuation beyond its current 2025 expiration date.
Senator Mark Warner (D-VA) set the tone for the conference with a strong commitment to the program's future. "It's time to make the NMTC permanent. Permanent! We are going to bring it home," Warner declared, underscoring the growing momentum behind the initiative. This sentiment was echoed by other key figures, including Senator Steve Daines (R-MT) and Representative Richard Neal (D-MA), who reiterated their support for a permanent extension during a Capitol Hill reception.
The NMTC program, enacted in 2000, has been a cornerstone of community development financing, generating over $135 billion in investments across all 50 states, the District of Columbia, and U.S. territories. These investments have led to the creation of more than 1.2 million jobs and the financing of over 8,500 businesses and projects in areas that traditionally lack access to patient capital.
Representative Claudia Tenney (R-NY), lead sponsor of House legislation to extend and make the NMTC permanent, highlighted the program's impact on job creation and small businesses. "The NMTC is helping get people back to work. It's helping small businesses, which is critical," Tenney stated, emphasizing the potential for even greater job creation if the program becomes permanent.
The push for permanence comes at a critical time. While Congress enacted a five-year, $25 billion extension through 2025 in December 2020 - the largest in the program's history - the looming expiration creates uncertainty for communities that rely on these investments. Both the Senate and House have introduced bipartisan bills (S. 234 and H.R. 2539) to make the NMTC extension permanent, reflecting the broad support for the program across party lines.
The importance of the NMTC program is further underscored by the release of the New Markets Tax Credit Coalition's fifth case study report, "The New Markets Tax Credit: At Work in Communities Across America." This comprehensive report showcases successful NMTC projects from every state, Puerto Rico, and the District of Columbia, illustrating the program's wide-reaching impact on local economies.
Bob Rapoza, spokesperson for the NMTC Coalition, emphasized the timeliness of the push for permanence. "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," Rapoza stated.
The potential permanent extension of the NMTC program carries significant implications for economic development in low-income urban neighborhoods and rural communities. By providing a stable, long-term source of investment, a permanent NMTC could attract more private capital to areas that have historically been overlooked by traditional financing sources. This could lead to sustained job growth, improved community facilities, and increased economic resilience in vulnerable areas.
As the 2025 expiration date approaches, the growing bipartisan support for the NMTC's permanence signals a recognition of the program's effectiveness in addressing economic disparities. The outcome of this legislative push could have far-reaching consequences for the future of community development financing and the economic landscape of underserved areas across the United States.
