Permanent Extension of New Markets Tax Credit Introduced in Senate Bipartisan Bill Would Increase Flow of Private Sector Capital Low Income Communities
WASHINGTON, June 11, 2013 /PRNewswire-USNewswire/ -- Today, Senators Jay Rockefeller (D-W.Va.) and Roy Blunt (R-Mo.) introduced the New Markets Tax Credit Act of 2013, bipartisan legislation to permanently extend the New Markets Tax Credit (NMTC) and increase its annual allocation.
"Unemployment across the country is still too high. The NMTC is a proven tool for creating quality jobs and economic opportunity in rural and urban communities across the country. This is a market-driven economic development tool that works," Senator Rockefeller, who sponsored the legislation, said in written remarks.
By providing an incentive for investment in economically distressed communities, the NMTC has generated over $55 billion in total investment, creating over 350,000 jobs between 2003 and 2011. According to a recent NMTC Coalition report, the investments in businesses and the jobs created by those businesses have generated more than enough federal tax revenue to pay for the program.
"The NMTC Program has already had a positive impact in Missouri, leading to more than $2 billion in investments and thousands of jobs," said Senator Blunt, the bill's lead co-sponsor. "I'm glad to support this bipartisan bill to make this tax credit permanent so that we can continue to encourage investment, growth, and job creation in low-income communities nationwide."
"A NMTC investment in rural Wheeling, West Virginia helped bring the Wheeling Stamping Building back to life," said Senator Rockefeller. "The building was once a bustling hub of the metal stamping industry. After deteriorating and sitting dormant for decades, the NMTC helped finance the restoration of the building that created 300 construction jobs, and today, the building houses 350 full-time employees in a community that needs good jobs."
The newly released 2013 NMTC Progress Report found NMTC investments are reaching severely distressed communities. Over 75 percent of investments go to areas with unemployment rates over 1.5 times the national average, poverty rates above 30 percent and/or median incomes below 60 percent of the area median.
"The Credit's potential is being stilted by the uncertainty surrounding its four consecutive temporary extensions," said Jose Villalobos, NMTC Coalition President. "We applaud Senators Rockefeller and Blunt for taking this crucial step toward securing permanent extension for the NMTC, fortifying the economic stability of these communities and the country's economic future."
SOURCE New Markets Tax Credit Coalition