U.S. Sens. Mark R. Warner of Virginia and Steve Daines of Montana, both members of the Senate Finance Committee, introduced legislation that will permanently extend the New Markets Tax Credit (NMTC).
The NMTC will encourage redevelopment and new construction in communities across the country, including Virginia. The bill will permanently extend the NMTC, which attracts capital to low-income communities by providing private investors a 39 percent federal tax credit for investments made in businesses or economic development projects, including housing.
“The New Markets Tax Credit is a vital tool in the fight to build more housing and encourage investment in communities that need it most. By leveraging this program, we can encourage economic development, expand opportunity and make housing more affordable for families across the country,” Warner said.
NMTC investments are available in all 50 states. In the last 20 years, $81 billion in NMTC allocations has financed more than 8,500 businesses and projects with total project costs of more than $130 billion. The NMTC Program created or retained more than 894,000 jobs and supported the construction of more than 56.7 million square feet of manufacturing space, 94.5 million square feet of office space, and 67.2 million square feet of retail space across the country.
“The New Markets Tax Credit spurs growth and creates jobs in our communities across Montana. Making this program permanent will encourage the opportunities and economic stability our country needs to continue thriving,” Daines said.
The New Markets Tax Credit Extension Act is one of several bills Warner has introduced or plans to introduce in the 119th Congress to expand access to housing and make housing more affordable for Virginians.
“The New Markets Tax Credit has been an essential tool for LISC to finance community revitalization work in Virginia and throughout the country. NMTCs have enabled LISC to finance a wide array of projects in disadvantaged communities, including the Petersburg Public Library, the Anna Julia Cooper School and The Market at 25th project in Richmond’s east end. The projects provide important educational resources, community facilities, healthy food options and affordable housing for local residents,” LISC Virginia Executive Director Jane Ferrara said.
In Appalachia, the NMTC is a game changer and has created and retained more than 8,170 jobs and supported economic development in underserved communities.
“We appreciate Sen. Warner’s continued leadership and efforts to strengthen the program and to make the New Markets Tax Credits permanent,” People Incorporated President and CEO Bryan Phipps said.
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Rebecca Barnabi
