Sewell, Reed Introduce Legislation to Extend, Increase NMTC
Reps. Terri Sewell, D-Alabama, and Tom Reed, R-New York, introduced legislation Monday to extend and increase the new markets tax credit (NMTC). The New Markets Stabilization Act would increase the NMTC allocation by $3.5 billion over four years, allow investors to carry back those credits for five years, exempt the NMTC from the 75% general business credit limitation, permanently exempt the NMTC from the alternative minimum tax and provide relief from certain debt modification rules for NMTC issuers and borrowers. Sewell and Reed previously introduced legislation to make the NMTC permanent. The NMTC expires at the end of this year, although the calendar-year 2020 round will be allocated next summer.
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.