Tiberi part of effort to make New Markets Tax Credit permanent

U.S. Rep. Pat Tiberi (R-Ohio), joined by U.S. Reps. Richard Neal (D-Mass.) and Tom Reed (R-N.Y.), introduced legislation on Tuesday designed to make the New Markets Tax Credit permanent.

The New Markets Tax Credit, established in 2000, has proven as a successful policy to create jobs and encourage community investment, Tiberi said. By providing investors with a tax credit of approximately 40 percent against their federal taxes for investments created in financially distressed areas, the benefit encourages funding in low-income rural communities and inner-city neighborhoods – where capital is rarely found otherwise.

The bill introduced by Tiberi, Neal and Reed would extend and expand the program so that it will continue working at the highest level possible to improve these troubled regions.

“I’ve seen first-hand the benefits of the New Markets Tax Credit in the 12th Congressional District,” Tiberi said. “Whether it is the financing of a new grocery store in a previously underserved area in Columbus, creating 46 full- and part-time jobs during the project’s first phase or the funding of a recreation and aquatic center in Muskingum County that supports nearly 70 jobs, this tax credit is a tool to help revitalize communities by not only putting people to work but by funding projects that are a community benefit.

“Since its inception in 2000, the New Markets Tax Credit has shown that it is a federal program that works — spurring investment that that grows local economies and generates jobs in the most distressed communities across the nation.”

With the funds from the tax credit, community development agencies are able to finance loans and provide investments in business and other development projects. During its 15 year run, it is estimated that the New Markets Tax Credit is responsible for approximately 750,000 jobs and influencing $63 billion of investment capital across the country.

“Barring Congressional action, this critical initiative will soon end. That is why I am proud to introduce legislation with Representatives Tiberi and Reed to make the New Markets Tax Credit permanent, and ensure another decade of key investments reach Western Massachusetts,” Neal said.

“The New Markets Tax Credit is a powerful tool to bring rebirth in our communities,” Neal said. “Making this tax credit permanent would ensure that successful projects will continue to remake our communities. It helps fulfill our commitment to erasing poverty and caring for communities.”