Permanent Extension of New Markets Tax Credit to Boost Economic Development in Underserved Communities

The New Markets Tax Credit (NMTC) has achieved a landmark permanence through the spending bill H.R.1, heralding a new era for economic development in underserved communities. This bipartisan effort, initiated in 2000, has been a cornerstone for driving investment and employment in low-income urban and rural regions, contributing over $143 billion in capital investment and generating 1.2 million jobs so far.

Key legislators including Senator Crapo (R-ID), Senator Daines (R-MT), Rep. Jason Smith (R-MO), and Rep. Tenney (R-NY) have played pivotal roles in ensuring the NMTC's permanent status. The extension is projected to channel $100 billion into underserved areas, bolster more than 4,000 businesses and projects, and create approximately 70,000 rural manufacturing jobs, among other advantages.

Phil Glynn, NMTC Coalition Board President, highlighted the significance of this permanence for offering stability to businesses and investors, which is crucial for generating more employment and opportunities in communities most in need. Previously facing expiration at the end of 2025, the NMTC has now been established as a durable mechanism for economic expansion, following its most substantial extension in the Consolidated Appropriations Act of 2021. For further details on the NMTC and its contributions, visit https://nmtccoalition.org/.