The New Markets Tax Credit (NMTC) program, a critical mechanism for stimulating private investment in low-income urban and rural areas, is gaining increasing bipartisan support for a permanent extension. At the recent NMTC Coalition's annual conference, key lawmakers and tax policy experts underscored the program's significance and the urgency of securing its future beyond the current 2025 expiration date.
Senator Mark Warner (D-VA) opened the conference with a forceful commitment to permanence, declaring, "It's time to make the NMTC permanent. Permanent! We are going to bring it home." This view was reinforced by Senator Steve Daines (R-MT) and Representative Richard Neal (D-MA), who addressed attendees at a Capitol Hill Reception. Representative Claudia Tenney (R-NY), lead sponsor of House legislation to extend and make the NMTC permanent, highlighted the program's role in boosting employment and supporting small businesses. "The NMTC is helping get people back to work. It's helping small businesses, which is critical," she said, adding that she plans to reintroduce the bill next year with Representative Terri Sewell (D-AL).
Enacted in 2000, the NMTC has a well-documented record of success. Over two decades, it has directed over $135 billion into communities outside the economic mainstream, financing more than 8,500 businesses and projects, and creating over 1.2 million jobs. These figures highlight the program's effectiveness in addressing economic disparities and fostering growth in areas that traditionally lack access to capital. The push for permanence comes at a critical juncture: in December 2020, Congress approved a five-year, $25 billion extension through 2025—the largest in the program's history—but without further action, the NMTC faces expiration. Bipartisan bills in both chambers (S. 234 and H.R. 2539) aim to make the extension permanent, recognizing the need for long-term certainty in delivering resources to marginalized communities.
The NMTC Coalition also released its fifth case study report, The New Markets Tax Credit: At Work in Communities Across America. This comprehensive report showcases NMTC case studies from all fifty states, Puerto Rico, and the District of Columbia, providing concrete examples of the program's wide-ranging impact. Bob Rapoza, NMTC Coalition spokesperson, emphasized the timeliness of the push: "With more than two decades of bipartisan successes under our belt, we're continuing our push to increase funds and to make the NMTC permanent. At a time when the economic frailty of our underserved communities has never been more apparent, we see a tremendous opportunity for our coalition to help create jobs, spread opportunity, and put America back on a solid financial footing."
The growing support for NMTC permanence reflects a broader recognition of the program's role in addressing economic inequalities and fostering sustainable development in underserved areas. As the U.S. continues to navigate economic challenges and pursue inclusive growth, the NMTC program stands out as a proven, bipartisan solution with a demonstrated ability to drive investment, create jobs, and revitalize communities across the nation.
