The NMTC Coalition is circulating an organization sign-on letter to Congress urging members to make the NMTC permanent. Organizations committed to community and economic development, adding jobs and increasing wages, and supporting healthcare, education, manufacturing, infrastructure, telecom, energy, the arts, and recreation are encouraged to add their name to this letter in support of a bipartisan program with a 20-year track record of success.
The sign-on letter, available at NMTCCoalition.org, closes on August 31, 2023. Any organization (businesses, trade groups, city governments, Mayors, nonprofits, investors, CDEs) can sign the letter using the form on the NMTC Coalition website.
As we continue our efforts to make the NMTC program permanent, it is critical for our elected officials in Congress to hear from the businesses and organizations who bring these programs to life across our country and are charged with making communities stronger and more economically sound, said NMTC Coalition spokesperson Bob Rapoza. This is an opportunity to make your voice heard and to make a real difference in communities that need help the most.
Authorized by Congress in 2000, the NMTC Program incentivizes community development and economic growth through the use of tax credits (given as allocations) that then attract private investment to distressed communities.
The unique beauty of the NMTC program is that it is used effectively in both rural and urban areas to support good jobs and strong wages and has historically held bipartisan support. In addition to creating high-quality jobs, NMTCs create and expand access to health care, early childcare and schools, job training, groceries, telecommunications, energy, arts, recreation, and infrastructure in ways that traditional private sector financing cannot effectively meet.
Since 2003, the NMTC has provided much-needed investment and advancement opportunities for underserved communities across the country. In just two decades, NMTCs have spurred an unprecedented level of investment in rural and urban low-income communities, generating nearly $130 billion in capital investment through public-private partnerships and creating more than one million jobs nationwide. The NMTC has an outstanding track record of revitalizing communities outside of the economic mainstream as a targeted, cost-efficient financial tool and it has the potential to achieve an even greater impact.
Currently, the NMTC program is set to expire in 2025. By adding their name to the sign-on letter, organizations will lend their support for making the NMTC permanent by passing the bipartisan NMTC Extension Act of 2023 (S. 234 and H.R. 2539). In addition to extending the program at $5 billion in allocation per year, the legislation would provide an inflation adjustment for future years. It also includes reforms to ensure the NMTC program maintains its efficiency during an economic downturn when it is needed the most.
Organizations, especially CDEs and investors on the frontlines of community revitalization efforts using NMTCs, are encouraged to join this effort to ensure no community is left behind and to preserve one of the federal governments most successful community development programs, said Aisha Benson, President and CEO of Nonprofit Finance Fund (NFF) and President of the NMTC Coalition.
The New Markets Tax Credit (NMTC) was enacted in 2000 to stimulate private investment and economic growth in low-income urban neighborhoods and rural communities lacking the patient capital to support and grow businesses, create jobs, and sustain healthy local economies. Since its inception, the NMTC has generated more than one million jobs. Due to the NMTC, nearly $130 billion is hard at work in underserved communities in all 50 states, the District of Columbia, and Puerto Rico. For more information, visit www.NMTCCoalition.org.
New Markets Tax Credit Coalition
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