New Market Tax Credit (NMTC)

Passed with overwhelming bipartisan support in 2000, the New Markets Tax Credit is the largest federal economic development initiative to be launched in 20 years. The NMTC delivers capital to underutilized markets, facilitating a government role in improving markets and expanding inclusiveness.

Recommendation:

• Congress should make the NMTC permanent. Congress has extended the credit one year at a time since 2006. Although these one-year extensions are helpful, the lack of long-term availability of the credit makes it extremely difficult for organizations and developers to plan; making the NMTC permanent would help alleviate this problem. Statutory changes that eliminate structural disadvantages faced by certified CDFIs should be made part of the permanent legislation.

Read more about the NMTC program at www.nextamericanopportunity.org/ffi/nmtc/.