Today, Congressman Pat Tiberi (R-OH) and Ranking Member of the Ways and Means Committee Richard E. Neal (D-MA) introduced legislation to make the New Markets Tax Credit (NMTC) a permanent part of the tax code. The NMTC is a cost-effective incentive that encourages public-private partnerships to invest in struggling rural and urban areas where access to capital is needed the most.
“The New Markets Tax Credit has spurred investment and driven real job growth across the state of Ohio,” said Congressman Pat Tiberi. “It is an important program that helped revitalize the Over-the-Rhine neighborhood in Cincinnati, financed the Ironville Terminal in Toledo, funded a new grocery store in an underserved area of Columbus and much more. Making the NMTC a permanent part of our tax code would provide more certainty to communities across the country looking for the same proven results of unlocking economic potential based on their needs.”
“Since its enactment in 2000, the New Markets Tax Credit (NMTC) has created thousands of jobs and generated billions of dollars of investment in low income communities across the country. In Massachusetts, the highly successful initiative has helped generate private investment in economic development projects from the Berkshire to Boston. That is why I’m working with Congressman Tiberi in a bipartisan manner to make it a permanent part of the tax code. The NMTC is a federal program with a proven record of success that should be made permanent and expanded,” said Congressman Richard E. Neal.
Note: In the last Congress, the PATH Act was signed into law to give permanent tax relief so more Americans can plan for the future and save more of their hard-earned dollars. A provision championed by Congressmen Tiberi and Neal to extend the NMTC for five years was included in the PATH Act.
In Fiscal Year 2016, the CDFI Fund reports that the NMTC delivered $3.16 billion in financing to 530 businesses, community facilities, and economic revitalization projects. Communities put the capital to work, creating nearly 11,000 permanent jobs and almost 27,000 construction jobs in areas with high unemployment and poverty.