NMTC Legislation 2007-2008

Enacted Legislation

H.R. 1424 Emergency Economic Stabilization Act of 2008
Introduced March 9, 2008 by Rep. Patrick Kennedy
Provides authority for the federal government to purchase and insure certain types of troubled assets for the purposes of providing stability to and preventing disruption in the economy and financial system and protecting taxpayers. Also provides a patch for the alternative minimum tax and extends the production tax credit (PTC) for wind energy for one year, the investment tax credit (ITC) for solar energy projects for eight years and the new markets tax credit (NMTC) for one year. Allows states to allocate an additional $8 per capita in low-income housing tax credit (LIHTC) amounts in 2008, 2009 and 2010 in the Midwestern Disaster Area. Also allows Texas and Louisiana to allocate $16 per capita in additional LIHTC amounts in 2008, 2009 and 2010 based on the populations of Brazoria, Chambers, Galveston, Jefferson and Orange counties in Texas and Calcasieu and Cameron parishes in Louisiana.

Summary of Energy, Extenders, AMT and Disaster Tax Provisions in the Emergency Economic Stabilization Act of 2008 (October 1, 2008)

List of Counties Included in the Midwestern Disaster Area

Joint Committee on Taxation Technical Explanation of the Tax Provisions of H.R. 1424 (October 1, 2008)

Statement of Administration Policy Regarding H.R. 1424— Emergency Economic Stabilization Act of 2008, Energy Improvement and Extension Act of 2008, and Tax Extenders and Alternative Minimum Tax Relief Act of 2008 (October 3, 2008)

Pennsylvania S. 3043 Urban Transit Hub Tax Credit Act (P.L.2007, c.346)
Introduced December 17, 2007 by Sen. Richard J. Codey
Allows tax credits to certain businesses for certain capital investments in urban transit hubs.

Introduced Legislation

Economic Substance

H.R. 2345 Abusive Tax Shelter Shutdown and Taxpayer Accountability Act of 2007
Introduced May 16, 2007 by Rep. Lloyd Doggett
Amends the Internal Revenue Code to revise or add provisions relating to tax shelter activity, including a provision to define "economic substance" for purposes of evaluating tax shelter transactions.

Extension of NMTC Program

H.R. 7060 Renewable Energy and Job Creation Tax Act of 2008
Introduced September 25, 2008 by Rep. Charles  Rangel
Would extend production tax credit for wind energy for one year and investment tax credits for solar energy projects for eight years. Also extends a number of expiring tax incentives, including the new markets tax credit.

Ways and Means Committee Staff Summary of H.R. 7060

Preliminary JCT Estimate of Cost of H.R. 7060

S. 3335, The Jobs, Energy, Families and Disaster Relief Act
Introduced July 24, 2008 by Sen. Max Baucus
Would extend for the NMTC for one year through 2009 and add counties whose average wage is 75 percent or less than the national average located in states whose average wage is less than 75 percent of the national average to the definition of qualifying low-income communities. The bill builds on the Energy Independence and Tax Relief Act of 2008 (S. 3125), which extends and expands production and investment tax credits for renewable energy, by adding provisions to provide immediate relief to victims of floods and other natural disasters, replenish the Highway Trust Fund to enable vital infrastructure repairs and more job creation, and require parity for mental health care treatment with other medical treatment in the nation’s health care system.

Estimated Revenue Effects of The Jobs, Energy, Families and Disaster Relief Act (July 24, 2008)

Summary of the Provisions of The Jobs, Energy, Families and Disaster Relief Act

H.R. 6049, Renewable Energy and Job Creation Act of 2008 (As Passed by House on May 21, 2008)
Introduced May 14, 2008 by Rep. Charles Rangel
The bill extends for one year (through 2009) the new markets tax credit, permitting a $3.5 billion maximum annual amount of qualified equity investments. This proposal is estimated to cost $1.315 billion over 10 years. Would also provide almost $20 billion of tax incentives for investment in renewable energy, carbon capture and sequestration demonstration projects, energy efficiency and conservation.

Press Release and Summary: Senate Passes Baucus-Grassley Clean Energy Incentives, Extensions of Expiring Tax Cuts, Disaster Relief and Protection from Alternative Minimum Tax (September 23, 2008)

Baucus Floor Statement Regarding Energy, Tax Extenders (September 18, 2008)

Legislative Text to the Senate Finance Committee Summary Amendment to the Substitute Amendment to H.R. 6049 (September 17, 2008)

Staff Summary of the Senate Finance Committee Summary Amendment to the Substitute Amendment to H.R. 6049 (September 17, 2008)

Estimated Revenue Effects of the Senate Finance Committee Summary Amendment to the Substitute Amendment to H.R. 6049 (September 17, 2008)

Legislative Text to the Energy Improvement and Extension Act (September 17, 2008)

Staff Summary of the Energy Improvement and Extension Act (September 17, 2008)

Estimated Revenue Effects of the Energy Improvement and Extension Act (September 17, 2008)

Press Release: Baucus, Grassley, Senate Leaders Agree To Move Clean Energy Incentives, Extend Expiring Tax Cuts, Offer Disaster Tax Relief, Protect Millions From Alternative Minimum Tax (September 16, 2008)

Statement of Adminstration Policy: H.R. 6049 – Renewable Energy and Job Creation Act of 2008 (May 21, 2008)

JCT Estimated Revenue Effects of H.R. 6049, Renewable Energy and Job Creation Act of 2008 (May 21, 2008)

Ways and Means Commitee Description of H.R. 6049, Energy and Tax Extenders Act of 2008

JCT Estimated Revenue Effects of H.R. 6049, Energy and Tax Extenders Act of 2008 (May 15, 2008)

JCT Description of H.R. 6049, Energy and Tax Extenders Act of 2008 (May 15, 2008)

S. 2886, the Alternative Minimum Tax and Extenders Tax Relief Bill of 2008
Introduced April 17, by Sen. Max Baucus
Among other things, would extend NMTC for one year until Dec. 31, 2009.

Summary of Provisions

GOP Senators Letter Urging Passage of Extenders Passage Without Revenue Offsets (April 23, 2008)

NMTC Coaltion and Industry Letter Thanking Baucus and Grassley and Expressing Support for Extending the NMTC (April 23, 2008)

H.R. 2075 New Markets Tax Credit Extension Act of 2007
Introduced April 30, 2007 by Rep. Richard Neal
Amends the Internal Revenue Code to extend the new markets tax credit through 2013 and provide for an inflation adjustment to the limitation amount for such credit after 2008.

S. 1239 New Markets Tax Credit Extension Act of 2007
Introduced April 26, 2007 by Sen. John D. Rockefeller
Amends the Internal Revenue Code to extend the new markets tax credit through 2013 and provide for an inflation adjustment to the limitation amount for such credit after 2008.

S.Con.Res. 21 Concurrent Resolution on the Budget for Fiscal Year 2008
Introduced March 28, 2007 by Sen. Kent Conrad
As proposed by S. Amdt 629, Sec. 303 provides the use of the deficit-neutral reserve fund for tax relief for reauthorizing the NMTC for five years.

S.Amdt. 629 to S.Con.Res.21
Introduced by Sen. Olympia Snowe on March 23, 2007
Reauthorizes the new markets tax credit for an additional 5 years and provides $17,000,000,000 in tax credit authority.

H.R. 3996 Temporary Tax Relief Bill of 2007
Introduced by Rep. Charles Rangel
Would provide relief from the alternative minimum tax (AMT) for one year and includes extensions for several expiring business and individual tax provisions, including the new markets tax credit (NMTC). NMTC Extension is in Sec. 223 of the bill, on page 11 of the PDF linked above.)

Summary

H.R. 3970 Tax Reduction and Reform Act of 2007
Introduced by Rep. Charles Rangel
Would provide tax relief through a permanent repeal of the individual alternative minimum tax (AMT) and enhancement of other tax benefits. The bill also includes extensions for several expiring tax provisions, including a one-year extension of the new markets tax credit (NMTC). The measure would extend the NMTC for one additional year (through the end of 2009), permitting a $3.5 billion maximum annual amount of qualified equity investments. (NMTC Extension is in Sec. 2003 of the bill, on page 73 of the PDF linked above.)

Extend NMTC to U.S. Territories

H.R. 5742
Introduced April 9, 2008 by Rep. Madeline Bordallo
Amends the Internal Revenue Code of 1986 to extend eligibility under the new markets tax credit for community development entities created or organized in American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico, and the Virgin Islands

GO Zone Provisions Extension

H.R. 4312 To Extend Certain Benefits Applicable to the Gulf Opportunity Zone
Introduced December 6, 2007 by Rep. Richard Baker
Would extend the special depreciation allowance, rehabilitation credit, work opportunity tax credit; new markets tax credit (NMTC), and tax exempt bond financing in GO Zone parishes in Louisiana. H.R. 4312 allocates an additional $200 million of NMTC funding for 2008 and $200 million for 2009.

New Markets Venture Capital Program

H.R. 1719 Securing Equity for the Economic Development of Low Income Areas Act of 2007
Introduced March 27, 2007 by Rep. Gwen Moore
Amends the Small Business Investment Act of 1958 to direct the Administrator of the Small Business Administration (SBA), in selecting companies to participate in the New Markets Venture Capital Program, to select at least one company from each geographic region of the SBA. Establishes the Office of New Markets Venture Capital, headed by a Director, to administer the program. Revises the definition of "low income geographic area" for program eligibility purposes.Requires a study by the SBA's Chief Counsel for Advocacy on the availability of equity capital in low-income urban and rural areas. Authorizes operational assistance grants to conditionally approved companies.

Special Allocation for TAA Related Investments

H.R. 3843 New Employment for Workers & Job Opportunities for Business Strength (NEW JOBS) Act of 2007
Introduced October 16, 2007 by Rep. Rep. Tom Reynolds
The bill would provide a special allocation under the NMTC program in connection with trade adjustment assistance (TAA). TAA is a federal program sponsored by the U.S. Department of Commerce that provides financial assistance to manufacturers affected by import competition. The bill would make an additional $500 million in NMTC allocations available in 2008 to spur capital or equity investments in, or loans to, businesses that receive TAA benefits or that employ TAA-eligible workers.

State New Markets Tax Credits

H.B. 1 Missouri New Markets Tax Credit
Introduced August 20, 2007 by Rep. Ron Richard
The bill authorizes a tax credit equal to 7 percent of the adjusted purchase price paid to the issuer of a qualified equity investment for the third credit allowance date and 8 percent for the next four credit allowance dates. The tax credits are not transferable or refundable but may be carried forward for up to five years. No more than $15 million of these tax credits can be utilized annually.

H.B. 437 Georgia New Markets Tax Credit
Introduced February 15, 2007 by Rep. Charles Martin
Amends Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to imposition and computation of income taxes, so as to provide for state income and financial institutions tax credits with respect to certain qualified low-income community investments and long-term debt securities.

Cosponsors     More information

Tax Shelters

H.R. 2136 Stop Tax Haven Abuse Act
Introduced May 3, 2007 by Rep. Lloyd Doggett
Restricts the use of offshore tax havens and abusive tax shelters.