New Markets Tax Credit Extension Act of 2023

Hozzl · 2024-01-31T08:15:23Z

Explore the details of House Bill 2539 New Markets Tax Credit Extension Act of 2023 currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Taxation. Stay informed on legislative developments.

1/31/2024, 8:15 AM

Summary of Bill HR 2539

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.

Congressional Summary of HR 2539

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).

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Current Status of Bill HR 2539

Bill HR 2539 is currently in the status of Bill Introduced since April 6, 2023. Bill HR 2539 was introduced during Congress 118 and was introduced to the House on April 6, 2023. Bill HR 2539's most recent activity was Referred to the House Committee on Ways and Means. as of April 6, 2023

Bipartisan Support of Bill HR 2539

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

198

Democrat Cosponsors

Republican Cosponsors

122

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill HR 2539

Primary Policy Focus

Taxation

Alternate Title(s) of Bill HR 2539

New Markets Tax Credit Extension Act of 2023New Markets Tax Credit Extension Act of 2023To amend the Internal Revenue Code of 1986 to permanently extend the new markets tax credit, and for other purposes.

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