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 has successfully leveraged over $143 billion in total capital investment and created more than 1.2 million jobs nationwide, demonstrating its effectiveness as a tool for community economic development.
The permanent extension of the NMTC is expected to deliver $100 billion in capital to underserved regions, support over 4,000 businesses and projects, and generate nearly 70,000 rural manufacturing jobs over the next decade. Additionally, it will expand 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. These projections underscore the transformative potential of the NMTC in addressing economic disparities and fostering sustainable growth.
Leaders from both the U.S. Senate and House have played a crucial role in championing the NMTC, with Senators Crapo (R-ID) and Daines (R-MT), along with Representatives Jason Smith (R-MO) and Tenney (R-NY), being recognized for their efforts. The NMTC Coalition, represented by spokesperson Bob Rapoza and Board President Phil Glynn, has expressed gratitude for the bipartisan support that has made this permanent extension possible. Glynn emphasized the certainty this provides to businesses and investors, enabling continued partnerships that prioritize high-impact investments in communities most in need.
The NMTC's journey to permanence has been marked by consistent bipartisan support, with eight extensions since its inception. The most recent five-year, $25 billion extension in the Consolidated Appropriations Act of 2021 was the largest in the program's history. With the threat of expiration looming at the end of 2025, the introduction of the New Markets Tax Credit Extension Act earlier this year set the stage for the current achievement. The permanent extension not only secures the future of the NMTC but also reaffirms the commitment to economic revitalization and job creation in America's most underserved communities.
