New Markets Tax Credit Extension Act of 2023

Hozzl · 2024-03-13T00:52:44Z

Explore the details of Senate Bill 234 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.

3/13/2024, 12:52 AM

Summary of Bill S 234

Bill 118 s 234, 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 program, which was originally established in 2000 to incentivize investment in low-income communities.

The New Markets Tax Credit program provides tax credits to investors who invest in qualified community development entities (CDEs) that in turn invest in businesses or real estate projects in economically distressed areas. These tax credits help attract private investment to areas that may otherwise struggle to attract capital.

The program has been successful in spurring economic development in underserved communities across the country, creating jobs and revitalizing neighborhoods. The New Markets Tax Credit Extension Act of 2023 seeks to extend the program's authorization, ensuring that it continues to benefit communities in need. Supporters of the bill argue that extending the New Markets Tax Credit program will help promote economic growth and create opportunities for residents of low-income areas. Critics, however, may raise concerns about the cost of the program and its effectiveness in achieving its goals. Overall, the New Markets Tax Credit Extension Act of 2023 is an important piece of legislation that has the potential to make a positive impact on communities in need. Its passage would signal a commitment to supporting economic development and revitalization in underserved areas across the United States.

Congressional Summary of S 234

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 S 234

Bill S 234 is currently in the status of Bill Introduced since February 2, 2023. Bill S 234 was introduced during Congress 118 and was introduced to the Senate on February 2, 2023. Bill S 234's most recent activity was Read twice and referred to the Committee on Finance. as of February 2, 2023

Bipartisan Support of Bill S 234

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill S 234

Primary Policy Focus

Taxation

Potential Impact Areas

Business investment and capitalEconomic developmentFinancial services and investmentsIncome tax creditsInflation and prices

Alternate Title(s) of Bill S 234

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

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