At the recent New Markets Tax Credit Coalition's annual conference, lawmakers and policy experts emphasized the need to make the New Markets Tax Credit (NMTC) program permanent. The program, set to expire in 2025, has been a crucial tool for stimulating private investment and economic growth in low-income urban neighborhoods and rural communities across the United States.
Senator Mark Warner (D-VA) opened the conference 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), highlighting the bipartisan support for the initiative.
The NMTC program has a significant track record of success since its inception in 2000. It has channeled more than $135 billion into underserved communities, financing over 8,500 businesses and projects, and creating more than 1.2 million jobs. These achievements underscore the program's importance in addressing economic disparities and fostering development in areas that traditionally lack access to patient capital.
Representative Claudia Tenney (R-NY), lead sponsor of House legislation to extend and make the NMTC permanent, emphasized the program's impact on job creation and small businesses. She committed to reintroducing the bill next year, stating, "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. In December 2020, Congress enacted a 5-year, $25 billion NMTC extension through 2025, the largest in the program's history. However, without further action, the program will expire. Establishing permanence would provide certainty in delivering resources to marginalized communities, particularly important as these areas face significant economic challenges.
Bob Rapoza, NMTC Coalition spokesperson, highlighted the program's potential to address current economic frailties: "We see a tremendous opportunity for our coalition to help create jobs, spread opportunity, and put America back on a solid financial footing."
The bipartisan support and proven track record of the NMTC program suggest that its potential permanence could have far-reaching implications for economic development in underserved areas. As policymakers consider the future of this tax credit, its impact on job creation, business growth, and community revitalization will likely be at the forefront of discussions about long-term economic strategies for low-income urban and rural communities across the nation.
