October 22nd, 2011 | 
Author: The New Markets Tax Credit Program began in 2000 as a way to encourage investment in distressed or low-income communities. Under the program, both businesses and individual investors receive tax credits (about 39 percent of the total amount invested) in exchange for investing in Community Development Entities (CDEs). Since it began, the program has awarded over $29 billion in tax credits. Proponents want the program to continue, but until recently, its future was uncertain.
Back in May, Senator John D. Rockefeller, IV (WV) introduced legislation aimed at extending the New Markets Tax Credit Program (NMTC), which was set to expire at the end of 2011. Senate Bill 996 would extend the program through 2016 and allocate $5 billion per year for it. The House recently introduced its version of the bill, as well.
Introduced by Congressman Brian Higgins (NY-27), the House bill – H.R. 3224 – also extends the NMTC program through 2016. However, it allocates twice as much money – $10 billion – as the Senate version. Other than that, the bills are nearly identical. Read the rest of this entry »
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