U.S. Senators Roy Blunt (Mo.) and Jay Rockefeller (W.Va.) introduced a bipartisan bill today to make the New Markets Tax Credit (NMTC) Program permanent. The NMTC provides private investors with a 39 percent federal tax credit for investments made in businesses or economic development projects in some of the most distressed communities in the nation. The bipartisan bill is co-sponsored by U.S. Senators Ben Cardin (Md.), Susan Collins (Maine), and Maria Cantwell (Wash.).
"The New Markets Tax Credit Program has already had a positive impact in Missouri, leading to more than $2 billion in investments and thousands of jobs," Blunt said. "I'm glad to support this bipartisan bill to make this tax credit permanent so that we can continue to encourage investment, growth, and job creation in low-income communities nationwide."
"A New Markets Tax Credit investment in Wheeling, West Virginia helped bring the Wheeling Stamping Building back to life," Rockefeller said. "The building was once a bustling hub of the metal stamping industry. After deteriorating and sitting dormant for decades, the New Markets Tax Credit helped finance the restoration of the building that created 300 construction jobs. Now the building houses 350 full-time employees in a community that needs good jobs."
Congress first authorized the NMTC program as part of the Community Renewal Tax Relief Act of 2000. The fiscal cliff deal included a two-year extension of the tax credit program with $3.5 billion in annual credit authority provided for 2012 and 2013.
In Missouri, use of the NMTC Program can be traced either directly or indirectly to the creation of nearly 24,000 jobs between 2003-2010. More than 100 Missouri businesses have utilized the tax credit since it was created, for projects totaling $2.1 billion in investments between 2003-2010. Missouri ranks 5th in the United States in terms of the dollar amount of these tax credits in the state.