WASHINGTON —U.S. Sens. Mark R. Warner (D-VA) and Steve Daines (R-MT), both members of the Senate Finance Committee, introduced legislation that will permanently extend the New Markets Tax Credit (NMTC) in order to encourage redevelopment and new construction in communities across the country, including Virginia. The New Markets Tax Credit Extension Act will permanently extend the NMTC, which attracts capital to low-income communities by providing private investors a 39 percent federal tax credit for investments made in businesses or economic development projects, including housing.

“The New Markets Tax Credit is a vital tool in the fight to build more housing and encourage investment in communities that need it most. By leveraging this program, we can encourage economic development, expand opportunity and make housing more affordable for families across the country,” said Sen. Warner.

“The New Markets Tax Credit spurs growth and creates jobs in our communities across Montana. Making this program permanent will encourage the opportunities and economic stability our country needs to continue thriving,” said Sen. Daines.

NMTC investments take place in all 50 states. In the last 20 years, $81 billion in NMTC allocations has financed more than 8,500 businesses and projects with total project costs of over $130 billion. The NMTC Program created or retained more than 894,000 jobs and supported the construction of over 56.7 million square feet of manufacturing space, 94.5 million square feet of office space, and 67.2 million square feet of retail space across the country.

The New Markets Tax Credit Extension Act is one of several bills Warner has introduced or plans to introduce in the 119^th Congress to expand access to housing and make housing more affordable for Virginians.

Joining Sens. Warner and Daines in introducing this legislation are Sens. John Boozman (R-AK.), Peter Welch (D-VT), Bill Cassidy (R-LA), Chuck Schumer (D-NY), Cindy Hyde-Smith (R-MS), Jeanne Shaheen (D-NH), Pete Ricketts (R-NE), Amy Klobuchar (D-MN), Jerry Moran (R-KS), Maria Cantwell (D-WA), Roger Wicker (R-MS), John Hickenlooper (D-CO(), Marsha Blackburn (R-TN) and Corey Booker (D-NJ).

“The New Markets Tax Credit has been an essential tool for LISC to finance community revitalization work in Virginia and throughout the country. NMTCs have enabled LISC to finance a wide array of projects in disadvantaged communities, including the Petersburg Public Library, the Anna Julia Cooper School and The Market at 25th project in Richmond’s east end.  These projects provide important educational resources, community facilities, healthy food options and affordable housing for local residents.  LISC strongly supports the New Markets Tax Credit Extension Act and thanks Senator Warner for his leadership in making this vital tax credit permanent,” said Jane Ferrara, Executive Director, LISC Virginia.

“Our New Markets Tax Credit allocation will allow Locus to fill project financing gaps by providing both equity and affordable debt to projects that may not move forward otherwise.  This financing tool will allow Locus to deepen its outreach efforts and drive more capital into projects that create jobs and drive economic development in areas that need it most,” said Clyde Cornett, CFO and Interim CEO, Locus.

“New Markets Tax Credits (NMTC) have proven to be vital tools in attracting billions in private investment into local communities. Every $1 of federal funding attracts $8 in private investment, which in turn creates jobs, enlivens communities, and spurs growth. We support a permanent NMTC program that can extend and amplify this efficient, market-driven solution in urban and rural areas across the country,” said Ellis Carr, President & CEO, Capital Impact Partners & CDC Small Business Finance.

“New Markets Tax Credits have been a game-changer in Appalachia and have helped us create and retain over 8,170 jobs across the region, supporting economic development in underserved communities. We appreciate Senator Warner’s continued leadership and efforts to strengthen the program and to make the New Markets Tax Credits permanent,” said Bryan Phipps, President and CEO, People Incorporated.

Full text of the bill is available here.

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