New Tool for Supporting the NMTC: QLICI Maps

Published by Michael Novogradac on Tuesday, June 12, 2012 - 12:00am

In this month’s issue of the Novogradac Journal of Tax Credits I write how the tax credit community can use the next several months as an opportunity to educate lawmakers about the important benefits of tax expenditures such as the new markets tax credit (NMTC).

Because fiscal pressure will continue to build between now and the election, lawmakers may be moved to strike significant agreements during the lame duck session on matters such as tax and budget bills. With tax reform gaining momentum and a sustained focus on deficit reduction factoring heavily in every legislative issue, active and thoughtful advocacy will be essential in the coming months.

The good news is that as the election nears members of Congress will be spending more and more time in their home states and districts. These state and district work periods provide a terrific opportunity to reach out to lawmakers. In the context of comprehensive, fundamental tax reform, community development professionals must defend the existence in the tax code of the new markets tax credit.

To aid in those efforts, Novogradac & Company has compiled information on new markets tax credit qualified low-income community investments (QLICIs) through 2010 for all states and U.S. territories using data from the NMTC Qualifying Census Tracts Mapping Tool.

These summaries of QLICIs made in each state, as well as each congressional district within that state, through 2010 are a quick way to demonstrate the real benefits of the tax credit program a lawmaker’s district or state. Communications with lawmakers – in writing or in person – should highlight the economic benefits created by the tax credit including how many jobs were created, local businesses that were opened or expanded, the role of local investors in the transaction and other positive economic indicators. Using the QLICI maps as a starting point, this information shouldn’t be difficult to find; these tax credits have been extended and enhanced for a reason: they work.