NMTC Legislation

Legislation

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New Markets Tax Credit:

Legislation - 2007

Enacted Legislation

Pennsylvania S. 3043 Urban Transit Hub Tax Credit Act (P.L.2007, c.346)
Introduced December 17, 2007 by Sen. Richard J. Codey
Allows tax credits to certain businesses for certain capital investments in urban transit hubs.

Introduced Legislation

Economic Substance

H.R. 2345 Abusive Tax Shelter Shutdown and Taxpayer Accountability Act of 2007
Introduced May 16, 2007 by Rep. Lloyd Doggett
Amends the Internal Revenue Code to revise or add provisions relating to tax shelter activity, including a provision to define "economic substance" for purposes of evaluating tax shelter transactions.

Extension of NMTC Program

H.R. 3996 Temporary Tax Relief Bill of 2007
Introduced by Rep. Charles Rangel
Would provide relief from the alternative minimum tax (AMT) for one year and includes extensions for several expiring business and individual tax provisions, including the new markets tax credit (NMTC). NMTC Extension is in Sec. 223 of the bill, on page 11 of the PDF linked above.)

H.R. 3970 Tax Reduction and Reform Act of 2007
Introduced by Rep. Charles Rangel
Would provide tax relief through a permanent repeal of the individual alternative minimum tax (AMT) and enhancement of other tax benefits. The bill also includes extensions for several expiring tax provisions, including a one-year extension of the new markets tax credit (NMTC). The measure would extend the NMTC for one additional year (through the end of 2009), permitting a $3.5 billion maximum annual amount of qualified equity investments. (NMTC Extension is in Sec. 2003 of the bill, on page 73 of the PDF linked above.)

GO Zone Provisions Extension

H.R. 4312 To Extend Certain Benefits Applicable to the Gulf Opportunity Zone
Introduced December 6, 2007 by Rep. Richard Baker
Would extend the special depreciation allowance, rehabilitation credit, work opportunity tax credit; new markets tax credit (NMTC), and tax exempt bond financing in GO Zone parishes in Louisiana. H.R. 4312 allocates an additional $200 million of NMTC funding for 2008 and $200 million for 2009.

New Markets Venture Capital Program

H.R. 1719 Securing Equity for the Economic Development of Low Income Areas Act of 2007
Introduced March 27, 2007 by Rep. Gwen Moore
Amends the Small Business Investment Act of 1958 to direct the Administrator of the Small Business Administration (SBA), in selecting companies to participate in the New Markets Venture Capital Program, to select at least one company from each geographic region of the SBA. Establishes the Office of New Markets Venture Capital, headed by a Director, to administer the program. Revises the definition of "low income geographic area" for program eligibility purposes.Requires a study by the SBA's Chief Counsel for Advocacy on the availability of equity capital in low-income urban and rural areas. Authorizes operational assistance grants to conditionally approved companies.

Reauthorization

H.R. 2075 New Markets Tax Credit Extension Act of 2007
Introduced April 30, 2007 by Rep. Richard Neal
Amends the Internal Revenue Code to extend the new markets tax credit through 2013 and provide for an inflation adjustment to the limitation amount for such credit after 2008.

S. 1239 New Markets Tax Credit Extension Act of 2007
Introduced April 26, 2007 by Sen. John D. Rockefeller
Amends the Internal Revenue Code to extend the new markets tax credit through 2013 and provide for an inflation adjustment to the limitation amount for such credit after 2008.

S.Con.Res. 21 Concurrent Resolution on the Budget for Fiscal Year 2008
Introduced March 28, 2007 by Sen. Kent Conrad
As proposed by S. Amdt 629, Sec. 303 provides the use of the deficit-neutral reserve fund for tax relief for reauthorizing the NMTC for five years.

Special Allocation for TAA Related Investments

H.R. 3843 New Employment for Workers & Job Opportunities for Business Strength (NEW JOBS) Act of 2007
Introduced October 16, 2007 by Rep. Rep. Tom Reynolds
The bill would provide a special allocation under the NMTC program in connection with trade adjustment assistance (TAA). TAA is a federal program sponsored by the U.S. Department of Commerce that provides financial assistance to manufacturers affected by import competition. The bill would make an additional $500 million in NMTC allocations available in 2008 to spur capital or equity investments in, or loans to, businesses that receive TAA benefits or that employ TAA-eligible workers.

State New Markets Tax Credits

H.B. 1 Missouri New Markets Tax Credit
Introduced August 20, 2007 by Rep. Ron Richard
The bill authorizes a tax credit equal to 7 percent of the adjusted purchase price paid to the issuer of a qualified equity investment for the third credit allowance date and 8 percent for the next four credit allowance dates. The tax credits are not transferable or refundable but may be carried forward for up to five years. No more than $15 million of these tax credits can be utilized annually.

H.B. 437 Georgia New Markets Tax Credit
Introduced February 15, 2007 by Rep. Charles Martin
Amends Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to imposition and computation of income taxes, so as to provide for state income and financial institutions tax credits with respect to certain qualified low-income community investments and long-term debt securities.

Tax Shelters

H.R. 2136 Stop Tax Haven Abuse Act
Introduced May 3, 2007 by Rep. Lloyd Doggett
Restricts the use of offshore tax havens and abusive tax shelters.