The American Bankers Association, seven state bankers associations and multiple banks joined more than 700 organizations today in a letter urging President Joe Biden and Congress to permanently extend the New Markets Tax Credit program, calling it an important source of funding for business and community development projects. The NMTC has a 20-year track record of financing small businesses, daycare centers, health clinics, schools and other projects, creating more than one million jobs in distressed communities across the country, the groups said.
The tax credit is set to expire in 2025. Two bills before Congress—S.B. 234 and H.R. 2539—would make the program permanent.
“Each year, the NMTC finances hundreds of projects creating over 50,000 jobs in urban and rural communities,” the groups said. “Tight competition for credits pushes NMTC investments toward high-impact projects in the most distressed communities in the country. Community development organizations target the creation of quality jobs with good benefits, most of which are accessible to existing residents of distressed communities.”