PR Newswire: news distribution, targeting and monitoring
See more news releases in Advocacy Group Opinion  | Domestic Policy

Thousands Call On Congress to Keep New Markets Tax Credit

Share with Twitter Share with LinkedIn

WASHINGTON, Sept. 17, 2013 /PRNewswire/ -- Over 1,200 businesses, investors, nonprofit organizations and community leaders sent a letter to Capitol Hill today urging Congress to extend and strengthen the New Markets Tax Credit (NMTC), which increases the flow of capital to businesses and development projects in low income communities across America by providing a modest tax incentive to private investors.

"The NMTC has leveraged billions of dollars in private investments in business expansions and community revitalization projects that would have not gone forward otherwise," said Bob Rapoza, a spokesperson for the New Markets Tax Credit Coalition. "In fact, a survey conducted by the U.S. Government Accountability Office found that 88 percent of NMTC investors would not have made their investments if not for this incentive."

The critical need for the NMTC is underscored by trends in federal investment. Overall, federal community development spending, measured as a share of Gross Domestic Product (GDP), has fallen by 75 percent over the last 30 years. With federal resources continuing to dwindle, it provides an efficient avenue for helping economically distressed communities attract capital.

"One of the unique attributes of the NMTC is its flexibility; the Credit empowers local leaders to choose projects that provide a broad community benefit in terms of job creation or added services," said Jose Villalobos, President of the NMTC Coalition and Senior Vice President of TELACU.

Investors made over $27 billion in direct NMTC investments from 2003 to 2011 to businesses in communities hit hard by the economic downturn, leveraging $55 billion in financing for those businesses. Over 72 percent of all NMTC investments have been in communities exhibiting severe economic distress, including unemployment rates more than 1.5 times the national average, poverty rates of 30 percent or more and/or median incomes at or below 60 percent of the area median.

"The Chairmen of the Senate Finance Committee and House Ways and Means Committee continue to talk about the importance of addressing tax reform this fall. We want to make sure that they—and their colleagues—understand the NMTC is a program that works, creating jobs and sustaining local economies," Villalobos said. "That's why over a thousand businesses, local-elected officials and organizations are urging Congress to make this investment in America's rural and urban communities by increasing credit authority and providing a permanent extension for the NMTC."

SOURCE New Markets Tax Credit Coalition


Featured Video

Journalists and Bloggers

Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.

View and download archived video content distributed by MultiVu on The Digital Center.

Share with Twitter Share with LinkedIn

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.



PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.


Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.

Area to test

Online Member Center

Not a Member?
Click Here to Join
Search News Releases
Advanced Search
  1. PR Newswire Services
  2. Knowledge Center
  3. Browse News Releases
  4. Contact PR Newswire
  5. Send a News Release