The New Markets Tax Credit: An Introduction (CRS Report for Congress)
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| Release Date |
Revised July 5, 2007 |
| Report Number |
RS22680 |
| Report Type |
Report |
| Authors |
Donald J. Marples, Government and Finance Division |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
The New Markets Tax Credit (NMTC) is a non-refundable tax credit intended toencourage private capital investment in eligible low-income communities. NMTCs areallocated by the Community Development Financial Institutions Fund (CDFI) under acompetitive application process. Investors who make qualified equity investmentsreduce their federal income tax liability by claiming the credit. The NMTC program,enacted in 2000, is currently authorized to allocate $18.5 billion through the end of2008. To date, $12.1 billion in NMTCs has been allocated.In the 110th Congress, legislative attention has focused on extending the NMTCprogram authorization past its currently scheduled 2008 expiration. H.R. 2075 and S.1239 propose to extend the NMTC through 2013. Both bills propose an additionalallocation authority of $3.5 billion per year through 2013, indexed for inflation.
