The New Markets Tax Credit (NMTC) has been granted a permanent extension as part of the spending bill H.R.1, marking a pivotal moment for economic development in underserved communities. This bipartisan initiative, established in 2000, has been instrumental in stimulating investment and growth in low-income urban and rural areas, leveraging over $143 billion in capital investment and creating more than 1.2 million jobs nationwide.
Bob Rapoza, spokesperson for the NMTC Coalition, expressed gratitude towards the lawmakers who championed the credit, including Senator Crapo (R-ID), Senator Daines (R-MT), Rep. Jason Smith (R-MO), and Rep. Tenney (R-NY). The NMTC's permanence ensures continued support for public-private partnerships, aiming to deliver $100 billion in capital to underserved regions, support over 4,000 businesses and projects, and generate nearly 70,000 rural manufacturing jobs over the next decade.
Phil Glynn, NMTC Coalition Board President, highlighted the certainty this permanence provides to businesses and investors, emphasizing the program's role in fostering local community development. The NMTC's impact extends beyond economic metrics, with significant contributions to healthcare, education, and housing, including the creation of more than 17,000 affordable homes.
Originally set to expire at the end of 2025, the NMTC's permanent extension follows a history of bipartisan support and temporary renewals, the most recent being a five-year, $25 billion extension in 2021. This legislative achievement underscores the enduring value of the NMTC in addressing economic disparities and revitalizing communities across the United States.
