New Markets Tax Credit Extension Act of 2023

New Markets Tax Credit Extension Act of 2023

This bill makes the new markets tax credit permanent. It also modifies the credit to (1) provide for an inflation adjustment to the limitation amount for the credit after 2023, and (2) allow an offset against the alternative minimum tax for the credit (determined with respect to qualified equity investments initially made after 2022).

Bill 118 HR 2539, also known as the New Markets Tax Credit Extension Act of 2023, is a piece of legislation currently being considered by the US Congress. The bill aims to extend the New Markets Tax Credit (NMTC) program, which was originally established in 2000 to incentivize investment in low-income communities.

The NMTC program provides tax credits to investors who make qualified investments in designated low-income areas, known as "qualified low-income communities." These tax credits help attract private investment to these communities, stimulating economic development and creating jobs.

The New Markets Tax Credit Extension Act of 2023 proposes to extend the NMTC program for an additional five years, through 2028. This extension would provide certainty to investors and communities that rely on the program for economic development. Supporters of the bill argue that the NMTC program has been successful in revitalizing distressed communities and creating jobs. They believe that extending the program will continue to spur investment in underserved areas and promote economic growth. Opponents of the bill may argue that the NMTC program is costly and inefficient, and that the tax credits primarily benefit wealthy investors rather than the communities they are intended to help. They may also raise concerns about the potential for abuse or fraud in the program. Overall, the New Markets Tax Credit Extension Act of 2023 is a significant piece of legislation that has the potential to impact economic development in low-income communities across the United States. Its fate will ultimately be decided by Congress in the coming months.