Blunt, Cardin Secure Long-Term Extension of Job-Creating New Markets Tax Credit Program

Statement

Today, U.S. Senators Roy Blunt (Mo.) and Ben Cardin (Md.) announced the New Markets Tax Credit (NMTC) program has been extended for five years with a $5 billion annual authorization. The NMTC program promotes investment in underserved communities by providing a 39 percent federal tax credit over seven years for businesses or economic development projects in areas with poverty rates of at least 20 percent, or median incomes at or below 80 percent. The NMTC extension was included as part of the FY21 government funding bill.

"The New Markets Tax Credit program has a proven record of creating jobs and spurring economic growth in communities where it's needed most," said Blunt. "In Missouri, NMTC has supported over 400 businesses and economic revitalization projects, bringing in a total of $4.3 billion in new investments. The NMTC program has helped build new affordable housing and childcare facilities, created thousands of jobs, and expanded access to social services. I'm glad we were able to secure a long-term extension for this bipartisan program, which will support economic development and create new jobs in underserved communities."

"The New Markets Tax Credit has broad bipartisan support in Congress because of its demonstrated ability to drive investment in some of the most vulnerable communities in the country. In Maryland, the program has been integral to many community development projects from an affordable housing project in Baltimore to a multicultural center for low-income families in Langley Park," said Cardin. "With a new five-year extension, the NMTC will continue to spur investment and economic development in underserved communities for years to come."

In December 2019, Blunt and Cardin secured a one-year extension with a $1.5 billion allocation increase for the NMTC program, which was originally authorized in 2000 as part of the Community Renewal Tax Relief Act.

According to the Treasury Department, every $1 in NMTC tax credits leverages $8 in private-sector investment. Direct NMTC investments have generated more than 1,000,000 jobs and $90 billion in capital from other sources, all of which was invested in communities with high poverty and unemployment rates.

Source