Republican Senators Introduce Bill to Make NMTC Permanent, Encourage OZ Investment
Four Republican Senators introduced legislation that includes a provision to make the new markets tax credit (NMTC) permanent and encourage investment in opportunity zones (OZs). Sens. Kelly Loeffler, R-Georgia, Marco Rubio, R-Florida, Mike Crapo, R-Idaho, and Thom Tillis, R-North Carolina, cosponsored the Economic Empowerment for Underserved Communities Act. The bill makes the NMTC permanent with a $5 billion annual allocation adjusted for inflation. The legislation also encourages investment in OZs by establishing representatives to facilitate participation in the incentive, allocates $7 billion to Community Development Financial Institutions (CDFIs), establishes a Small Business Investment Company facility to enhance access to venture capital for underserved groups and businesses affected by COVID-19, and extends Small Business Administration debt relief provisions from the Coronavirus Aid, Relief and Economic Security (CARES) Act. The NMTC is authorized only through the calendar-year 2020 round. Loeffler’s office released a summary of the bill and text of the Economic Empowerment for Underserved Communities Act will be posted to www.newmarketscredits.com when it’s available.
The future of the NMTC and other pressing community development issues will be topics at the Novogradac 2021 New Markets Tax Credit Virtual Conference, Jan. 21-22, 2021.