Rep. Terri Sewell (D-AL) and Rep. Tom Reed (R-NY) recently introduced the New Markets Tax Credit [NMTC] Extension Act of 2021 to assist low-income rural communities and urban neighborhoods that have been impacted by COVID-19.
“The COVID-19 pandemic has laid bare the historic disinvestments in our rural and underserved communities," said Sewell. "Now more than ever, it is critically important that our communities have permanent access to the [NMTC] as a tool to facilitate investments in local businesses and community development projects as we recover from our economic crisis.”
The bill aims to stimulate economic revitalization and help with job growth, Sewell said in her announcement.
“The NMTC remains crucial to the creation of job growth and opportunity in Alabama’s 7th Congressional District, and I’m proud to introduce this bipartisan bill to ensure our most underserved communities are not left behind.”
The act would "provide private investors with a 39 percent credit against federal income taxes for investments made in some of the most distressed communities in the nation," the announcement said.
Additionally, the NMTC would be a a permanent part of the Internal Revenue Code; indexes allocation levels to inflation and would exempt its investments from the Alternative Minimum Tax.
Low-income communities eligible for extension are defined by U.S. Census data as "census tracts with a poverty rate of at least 20 percent, or with median family incomes that do not exceed 80 percent of area median income."
“We care about local communities and small businesses across New York who deserve fair access to new economic opportunities,” said Reed. “We will continue to fight for the passage of the [NMTC] Extension Act to ensure low-income or rural areas can attract the kinds of critical investments that will generate jobs, revitalize the area, and grow the economy."
"As our nation recovers from the public health and economic impacts of COVID-19, we must do everything we can to lift up and stand with historically underserved communities.”
Read the NMTC here.