WASHINGTON, Dec. 12, 2012 /PRNewswire/ -- A report released today by the New Markets Tax Credit Coalition details how the New Markets Tax Credit (NMTC) has spurred private investment in economically distressed communities to create over 500,000 jobs, generate billions in federal tax revenue and revitalize urban and rural communities nationwide.
"While there is ample data on the NMTC's track record of delivering capital to our most challenged communities, there was little research on its aggregate impact, until now," explained NMTC Coalition Board of Directors Chairman Jose Villalobos.
The NMTC Economic Impact Report is the first to measure the aggregate economic impact of NMTC investments over the course of the program and examine the extent to which federal tax revenue generated by NMTC investments offsets program costs.
The Report highlights four key findings:
- NMTC investments between 2003 and 2010 are responsible for creating over 500,000 jobs in economically distressed communities across America;
- These investments generated over $5.3 billion in federal tax revenue and over $3 billion in state and local taxes;
- Federal tax revenue generated by NMTC investments more than covers the program cost as measured in terms of revenue lost by the federal government; and
- Through 2010, NMTC investments directly generated over 124,000 operational (permanent) jobs. In 2010 alone, NMTC investments in operational activities generated almost $1.1 billion in federal tax revenue, easily offsetting the estimated $720 million cost of the program for the federal government and providing a 50 percent return on investment.
A second new NMTC Coalition report -- New Markets Tax Credit: At Work in Communities Across America -- profiles 92 projects made possible by NMTC investments.
One such project is Chase New Markets Corporation's NMTC investment in Peckham, Inc., a nonprofit organization that provides extensive training, job placement and on-site employment opportunities to persons with learning, developmental and physical disabilities. Peckham also operates a light industrial manufacturing facility for these clients in Lansing, Mich. Chase's investment financed an expansion of the facility, which now employs 700 with the potential addition of 200-300 jobs over the next decade.
The NMTC was enacted in 2000 to spur private investment and economic growth in low income communities by offering a modest incentive on investments made in these communities.
The NMTC is awaiting congressional renewal.
SOURCE New Markets Tax Credit Coalition