The American Bankers Association today signed a union letter advising Congress to make the New Markets Tax Credit program long-term, and it is motivating banks to do the exact same by signing the letter by the end of the month. The NMTC program incentivizes neighborhood advancement and financial development through tax credits that bring in personal financial investment to distressed neighborhoods, according to the Community Development Financial Institutions Fund. The credit has actually assisted produce 239 million square feet of production, workplace, and retail area and funded more than 10,800 organizations, however it is set to end in 2025.
The letter by the NMTC Coalition advises legislators to make the program a long-term part of the federal tax code through the passage of the bipartisan NMTC Extension Act. In addition to extending the program at $5 billion in allotment each year, the expense would supply an inflation change for future years, according to the union.
“The NMTC has a 20-year track record of financing small businesses, daycare centers, health clinics, manufacturing expansions, workforce training programs, broadband expansions, schools, recreational facilities, clean energy projects and other revitalization projects that strengthen communities and generate long-term economic growth,” the letter states. “These new investments have created over one million jobs in distressed communities across America.”