Yesterday, Congressmen Pat Tiberi (R-OH), Richard Neal (D-MA), and Tom Reed (R-NY) introduced a bill that would make permanent a tax credit proven to create jobs and encourage community investment. The New Markets Tax Credit, established in 2000, attracts capital by providing private investors with a 39 percent credit against federal income taxes for investments made in some of the most distressed areas in the country. This bill would extend and expand this program.
“Since its inception in 2000, the New Markets Tax Credit has shown that it is a federal program that works—spurring investment that that grows local economies and generates jobs in the most distressed communities across the nation.” Rep. Neal said. “In the last fourteen years, the New Markets Tax Credit has generated $63 billion in capital for projects in low income communities resulting and created over 744,000 jobs in traditionally overlooked communities.”
“However, barring Congressional action, this critical initiative will soon end. That is why I am proud to introduce legislation with Reps. Tiberi and Reed to make the New Markets Tax Credit permanent, and ensure another decade of key investments reach Western Massachusetts,” Rep. Neal added.
“The New Markets Tax Credit is a powerful tool to bring rebirth in our communities.” said Reed. “Making this tax credit permanent would ensure that successful projects will continue to remake our communities. It helps fulfill our commitment to erasing poverty and caring for communities.”
U.S. Senator Roy Blunt (R-MO) plans to introduce companion legislation in the Senate.