With Congress considering sweeping tax reform, H.R. 1098 is likely to die in committee. Here is the CRS summary:
New Markets Tax Credit Extension Act of 2017
This bill amends the Internal Revenue Code to: (1) make permanent the new markets tax credit, (2) provide for an inflation adjustment to the limitation amount for such credit after 2016, and (3) allow an offset against the alternative minimum tax for such credit (determined with respect to qualified equity investments initially made after 2016).
Once again Rep. Tiberi and Rep. Reed seek to cut corporate taxes with new loopholes.
The impact of NMTC investments in rural communities has been significant. According to a recent report from the NMTC Coalition, the credit delivered a total of $11.6 billion in capital investment to more than 800 rural businesses. These NMTC investments created more than 100,000 jobs.
It isn’t clear that the correlation between the New Markets Tax Credit and new jobs is causal, but it is about politics not facts.