Kelly, Tenney reintroduce the New Markets Tax Credit Extension Act
WASHINGTON, D.C. -- On Friday, February 7, U.S. Reps. Mike Kelly (R-PA) and Claudia Tenney (R-NY) introduced the New Markets Tax Credit Extension (NMTC) Act alongside Rep. Terri Sewell (D-AL), and Rep. Danny Davis (D-IL).
This legislation would make the NMTC permanent, index the allocation to inflation in future years, and exempt NMTC investments from the alternative minimum tax.
Established under the Community Renewal Tax Relief Act of 2000 (PL 106-554), the NMTC serves as a critical funding source for businesses and community facilities in low-income and economically distressed communities, especially rural areas, nationwide. Private investors are incentivized with a 39% tax credit, distributed over seven years, for qualifying investments in Community Development Entities (CDEs). These CDEs utilize the investment proceeds to fund business expansions, health centers, daycare facilities, business incubators, and other vital revitalization initiatives.
“Over the years, the New Markets Tax Credit has well-proven its worth by revitalizing neighborhoods and cities and that need the help the most. The New Markets Tax Credit Extension (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. 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 119th Congress,” said Rep. Kelly.
"The New Markets Tax Credit, set to expire on December 31, 2025, has been a cornerstone of economic growth, creating millions of jobs and channeling billions of dollars into communities, including New York's 24th District. In our community, this credit supported the development of the new GLOW YMCA facility in Batavia, NY, in addition to the thousands of other revitalization projects nationwide. Making the NMTC permanent will ensure rural communities continue to benefit from this vital resource by creating jobs and supporting economic development," said Congresswoman Tenney.
“In Alabama’s 7th Congressional District, we have seen the power of the New Markets Tax Credit to spur investment and incentivize economic growth in some of our must vulnerable and underserved communities. The New Markets Tax Credit remains a critical tool to promote job creation and provide opportunities to those who need them most. Now more than ever, Congress must ensure that this tool is made a permanent part of our tax code,” said Congresswoman Sewell.
“I am proud that I was an original sponsor of the New Markets Tax Credit bill. New Market Tax Credits are an essential tool to help communities thrive, and my Congressional District alone has benefited from over $800 million in allocations that created thousands of jobs. Health centers, grocery stores, investment hubs, schools, community centers, and businesses flourish in Chicago due to New Market Tax Credits, and I proudly join with Reps. Kelly and Sewell to make these credits permanent,” said Congressman Davis.
"From rural towns to urban neighborhoods, New Markets Tax Credit investments have transformed neighborhoods, funding essential projects like healthcare centers, schools, and workforce development facilities," said Lori Chatman, President of the Capital Division at Enterprise Community Partners. "A proven tool for catalyzing economic investment and growth in communities that need it the most, the NMTC must be made a permanent fixture in the tax code before it expires this year. We applaud Congresswoman Tenney for championing this legislation and urge Congress to act swiftly to safeguard the future of this vital tool for community revitalization."
Additional cosponsors include Rep. Gwen Moore (D-WI), Rep. Linda Sanchez (D-CA), Rep. Beth Van Duyne (R-TX), Rep. Carol Miller (R-WV), Rep. Susan DelBene (D-WA), Rep. Vern Buchanan (R-FL), Rep. Darin LaHood (R-IL), Rep. Jimmy Gomez (D-CA), Rep. Don Beyer (D-VA), Rep. Jimmy Panetta (D-CA), Rep. Rudy Yakym (R-IN), Rep. Mary Miller (R-IL), Rep. Judy Chu (D-CA), Rep. Randy Feenstra (R-IA), Rep. Mike Carey (R-OH), Rep. Lloyd Smucker (R-PA), Rep. Brian Fitzpatrick (R-PA), Rep. Greg Steube (R-FL), Rep. Nathaniel Moran (R-TX), and Rep. Michelle Fischbach (R-MN).