U.S. Rep. Mike Kelly (R-PA) on April 6 proposed bipartisan legislation that would make permanent the New Markets Tax Credit Extension (NMTC), which is set to expire on Dec. 31, 2025.
“Over the years, the New Markets Tax Credit has well-proven its worth by revitalizing neighborhoods and cities that need help the most,” Rep. Kelly said.
The NMTC, established in the enacted Community Renewal Tax Relief Act of 2000, provides financing for businesses and community facilities in low-income urban and rural areas across the country, and offers private investors a 39 percent tax credit distributed over seven years for qualified investments into Community Development Entities (CDEs).
In turn, the CDEs use the proceeds of these investments to finance business expansions, healthcare centers, daycare facilities, business incubators, and other essential revitalization projects, according to information provided by Rep. Kelly’s staff.
The congressman last week signed on as the lead original cosponsor of the New Markets Tax Credit Extension (NMTC) Act of 2023, H.R. 2539, which is sponsored by U.S. Rep. Claudia Tenney (R-NY) to make the NMTC permanent, index the allocation to inflation in future years, and exempt NMTC investments from the Alternative Minimum Tax, according to a bill summary released by the lawmakers.
“The NMTC Act would allow more communities across the country to receive the benefits that I have seen firsthand in my district, including 518 new jobs from three projects in Northwestern Pennsylvania,” said Rep. Kelly. “Since the program’s inception, the NMTC has created over 24,000 permanent jobs and 27,000 construction jobs across Pennsylvania.
“Along with revitalizing America’s Main Streets, the NMTC program is a job creator and I’m proud to support this legislation again in the 118th Congress,” he added.
Among the 24 members who joined Rep. Kelly as an original cosponsor of H.R. 2539 were U.S. Reps. Carol Miller (R-WV), Brian Fitzpatrick (R-PA), Lloyd Smucker (R-PA), Brad Wenstrup (R-OH), Darin LaHood (R-IL), Vern Buchanan (R-FL), and Terry Sewell (D-AL).
“The New Markets Tax Credit remains a critical tool to promote job creation and provide opportunities to those who need them most,” said Rep. Sewell. “We must ensure that this tool is made a permanent part of our tax code, and that’s exactly what this legislation would do.”
The NMTC Coalition supports the measure, which has been referred for consideration to the U.S. House Ways and Means Committee.