New Markets Tax Credit News Briefs - April 2017

Monday, April 10, 2017

Reps. Pat Tiberi, R-Ohio, Tom Reed, R-N.Y., and Richard Neal, D-Mass., introduced legislation Feb. 15 that would make the federal new markets tax credit (NMTC) permanent, while Sens. Roy Blunt, R-Mo., and Ben Cardin, D-Md., introduced similar legislation in the Senate. The bills call for the NMTC to be a permanent part of the tax code with an inflation adjustment in future years and an alternative minimum tax (ATM) relief for investors. If passed, the inflation adjustment would raise the NMTC allocation for 2017 from $3.5 billion to $4.94 billion. The House bill had 27 cosponsors at press time and was assigned to the Ways and Means Committee, while the Senate bill had an additional cosponsor and was assigned to the Finance Committee. Both bills are posted at www.newmarketscredits.com.

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Four members of the Minnesota state House of Representatives Feb. 16 introduced a bill to establish a state NMTC. HF 1303 calls for a state credit with the same structure as the federal NMTC, effective Jan. 1, 2017. It would have a cumulative cap of $300 million through its sunset date at the end of 2019 and would require a proportional amount of the allocation to go to areas outside the metropolitan areas of the state. The credit would not be transferrable. On March 9, the bill was sent to the taxes committee. HF 1303 is posted at www.newmarketscredits.com.

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