On December 20, 2019, the New Markets Tax Credit (NMTC) program was approved for a one-year, $5 billion extension as part of the Fiscal Year 2020 appropriations bill, H.R. 1865. The demand for NMTCs across the country has been met with a $1.5 billion increase in allocation in lieu of its impending December 31 expiration date, safeguarding the means for community revitalization and job creation and retention as well as economic opportunity for businesses and the local population. With such an increase in allocation, the NMTC program has a projected impact of 138 manufacturing and industrial projects, 115 community facility projects, 55 mixed-use projects, and 51 healthcare projects, generating an estimated total of 118,000 jobs.
The New Markets Tax Credit program is a bipartisan effort to stimulate investment and economic growth in low-income urban neighborhoods and rural communities. Since its inception in 2000 as part of the Community Renewal Tax Relief Act (P.L. 106-554), the NMTC program has financed more than 6,000 projects, generating more than one million jobs in all 50 states, the District of Columbia, and Puerto Rico. In December 2015, the NMTC program was provided a five-year authorization in the PATH Act (P.L. 114-113).
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