WASHINGTON – Today, U.S. Senators Ben Cardin (D-Md.) and Roy Blunt (R-Mo.) announced the New Markets Tax Credit (NMTC) program has been extended for one year with a $1.5 billion allocation increase, bringing the total authorization to $5 billion for FY2020, in legislation headed to the president’s desk. The NMTC program promotes investments 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.
“I am pleased that Congress not only extended the New Markets Tax Credit for another year, but also expanded the funding of this highly successful program,” Senator Cardin said. “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. I look forward to continue working with Senator Blunt to make the New Markets Tax Credit permanent to spur investment and economic development in underserved communities for years to come.”
“The New Markets Tax Credit program has played an important role in attracting new investment to communities across the state,” Senator Blunt said. “The program has benefited at least 345 Missouri businesses and economic revitalization projects, bringing in a total of $3.9 billion in new investments. I will continue working with my colleagues to permanently extend this program, a critical tool in boosting economic development in areas where it is needed most.”
Earlier this year, Cardin and Blunt introduced legislation that would permanently authorize the program. The NMTC was originally authorized in 2000 as part of the Community Renewal Tax Relief Act.
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.