Secure the Future: Advocating for Permanent NMTC Extensions

The New Markets Tax Credit (NMTC) has been a pivotal program in fostering economic development in areas that traditional investment often overlooks. The annual NMTC Conference, held by the NMTC Coalition, recently brought this program into sharp focus, uniting policymakers and community leaders to discuss tax policy trends and the future of community economic development.

Bipartisan Support for NMTC Extension

One of the standout themes of the NMTC Conference was the bipartisan support for making the NMTC extension permanent. This was highlighted by the presence of three influential members of Congress and key figures from the U.S. Treasury Department, who all echoed the importance of the NMTC in their keynote speeches.

• Rep. Richard Neal (D-MA), Chairman of the Ways and Means Committee, has been a long-time advocate for the NMTC. Neal’s determination to secure the program’s future was evident when he managed to secure a five-year extension in 2020. He underscored the NMTC’s role in financing essential businesses and community projects, stating, “The New Markets program plays a significant role in financing many vital businesses and community projects that are overlooked by traditional lending markets.”
• Rep. Claudia Tenney (R-NY), the lead sponsor of the House bill, highlighted the NMTC’s local impact, pointing out that it had helped bring over 400 quality jobs to her district alone. Her commitment to the cause was clear when she said, “We’re going to push for permanence. It’s something we’re going to fight for.”
• Sen. Steve Daines (R-MT), who co-led the introduction of the Senate bill, shared his passion for the NMTC and its benefits to Montana and the nation. His quote, “I’m a passionate advocate. The New Markets Tax Credit is a really important part of what we do in Montana, as it is around the country. I’m passionate about making it permanent,” showcases his commitment to the program.

The legislation for NMTC permanence, represented by bills S. 234 and H.R. 2539, is crucial for providing certainty in delivering resources to low-income and marginalized communities. The bipartisan support for these bills indicates a strong possibility for permanent extension, which would ensure the continuation of NMTC’s benefits well beyond its current 2025 expiration date.

NMTC’s Economic Impact and Success

The NMTC’s track record speaks volumes about its effectiveness. Since its inception, the program has delivered more than $130 billion to both rural and urban communities that are often bypassed by conventional economic investment. This infusion of capital has been instrumental in generating over one million jobs, according to the NMTC Coalition.

• The jobs created span a wide range of industries, from manufacturing to healthcare, education to clean energy, reflecting the NMTC’s versatility in addressing various community needs.
• The financing of over 8,000 projects and businesses demonstrates the NMTC’s expansive reach. These projects often serve as catalysts for further economic development, creating a multiplier effect that extends benefits far beyond the initial investment.

Furthermore, the NMTC’s success can also be measured by the sustainable development it promotes. By focusing on long-term, community-driven projects, the NMTC ensures that the growth it stimulates is inclusive and enduring. This has been especially crucial for communities that have historically lacked access to the resources needed to thrive economically.

The Path Forward: Securing NMTC’s Future

The recent NMTC Conference highlighted the importance of the NMTC as a tool for economic revitalization. However, the ongoing success of this program hinges on the permanence of its legislative framework. The certainty that comes with a permanent extension is vital for investors, community development entities, and the communities they serve.

• Making the NMTC permanent would provide a stable foundation for future investments, allowing for long-term planning and sustained economic growth in underserved areas.

• The NMTC’s ability to draw private investment into low-income communities is amplified when there is a predictable policy environment. A permanent extension would bolster investor confidence and likely lead to an increase in community development ventures.

• Lastly, the commitment to permanence would send a strong message that the federal government is dedicated to fostering equitable economic development. This would not only benefit the communities directly impacted by the NMTC but also contribute to a more balanced and inclusive national economy.

In conclusion, the NMTC has proven to be a transformative tool for community revitalization. The support from key policymakers at the NMTC Conference has set the stage for potential legislative action that could secure the future of the NMTC. As discussions continue, the focus remains on ensuring that the benefits of the NMTC can be sustained and expanded to reach even more communities in need.