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Bill Would Broaden NMTCs Use for Agricultural Businesses
Rep. Mike Thompson, D-California, introduced today the Local Food Production Enhancement Act of 2021, a bill aimed at boosting investment in agricultural production through new markets tax credits (NMTCs). H.R. 5176 would make qualified farming businesses eligible for the NMTC and adjust the applicable percentage of new qualified equity investments (QEIs) to 6% for the first four allowance dates and 7% for the remainder. Investments predating the act would be eligible for the standard NMTC rate of 5% for the first three credit allowance dates and 6% thereafter. The bill clarifies farming operations that are eligible for NMTCs, including proximity to grocers and workers.
Learn about this and other proposed NMTC legislation and the possible effects on future investment at the Novogradac 2021 Fall New Markets Tax Credit Conference Oct. 28-29 in Austin, Texas.