Kennedy Sutherland, along with a group of more than 1,400 businesses, investors, nonprofit organizations and community leaders, sent letters to the House and Senate tax-writing committees, urging legislators to extend the New Markets Tax Credit (NMTC) program.
The New Markets Tax Credit was established in 2000 by a bipartisan coalition of lawmakers. Over the last decade, the Credit has promoted and leveraged private-sector investments in distressed urban and rural communities, spurring economic growth, entrepreneurship, and job creation in areas that need it the most. Since 2003, New Market Tax Credit investments have directly created over 550,000 jobs at a cost to the federal government of under $19,500 per job and leveraged $60 billion in capital investment to credit-starved businesses in communities with high poverty and unemployment rates.
Over the last 30 years, federal spending on community development, measured as a share of Gross Domestic Product (GDP), has fallen by 75 percent. In many economically distressed urban and rural communities, the only capital resource available for revitalization – to finance growing small businesses and manufacturing ventures, construct child care and health care facilities, and invest in new grocery stores or supermarkets – is New Market Tax Credits.
The New Market Tax Credit is an effective and economical tool for attracting private sector capital, creating jobs and business opportunities, and improving the local economies of some of the poorest urban and rural communities in America. Due to the program’s results Kennedy Sutherland urged the Committee to prioritize an extension of the New Markets Tax Credit.