The New Markets Tax Credit program is gaining increased bipartisan support for permanent extension as lawmakers and tax policy experts emphasize its importance for stimulating private investment in low-income urban and rural communities. At the recent NMTC Coalition's annual conference, Senator Mark Warner (D-VA) opened with a strong commitment to the program's permanence, stating "It's time to make the NMTC permanent. Permanent! We are going to bring it home." This sentiment was echoed by other key figures including Senator Steve Daines (R-MT) and Representative Richard Neal (D-MA), who addressed attendees at a Capitol Hill Reception.
The NMTC program, enacted in 2000, has a proven track record of success with more than $135 billion channeled into communities outside the economic mainstream over its 20-year history. The program has financed over 8,500 businesses and projects while creating more than 1.2 million jobs, demonstrating effectiveness in addressing economic disparities and fostering growth in areas traditionally lacking access to capital. Representative Claudia Tenney (R-NY), lead sponsor of House legislation to extend and make the NMTC permanent, highlighted the program's impact on employment and small businesses, noting "The NMTC is helping get people back to work. It's helping small businesses, which is critical."
The push for permanence comes at a critical time following Congress's approval of a five-year, $25 billion extension of the NMTC through 2025 in December 2020. Without further action, the program faces expiration despite both the Senate and House introducing bipartisan bills (S. 234 and H.R. 2539) to make the extension permanent. These legislative efforts recognize the need for long-term certainty in delivering resources to marginalized communities. The NMTC Coalition also released its fifth case study report, The New Markets Tax Credit: At Work in Communities Across America, which showcases NMTC case studies from all fifty states, Puerto Rico, and the District of Columbia.
Bob Rapoza, NMTC Coalition spokesperson, emphasized the timeliness of the push for permanence, stating "With more than two decades of bipartisan successes under our belt, we're continuing our push to increase funds and to make the NMTC permanent. 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." The growing support for NMTC permanence reflects broader recognition of the program's role in addressing economic inequalities and fostering sustainable development in underserved areas as the U.S. continues to grapple with economic challenges and seeks to promote inclusive growth.
