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New Markets Tax Credit Extension Act of 2023
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.
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).
Read the Full Bill
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
1Democrat Sponsors
1Republican Sponsors
0Unaffiliated Sponsors
0Total Number of Cosponsors
40Democrat Cosponsors
18Republican Cosponsors
20Unaffiliated Cosponsors
2Policy Area and Potential Impact of Bill S 234
Primary Policy Focus
TaxationPotential Impact Areas
- Business investment and capital
- Economic development
- Financial services and investments
- Income tax credits
- Inflation and prices
Alternate Title(s) of Bill S 234
New Markets Tax Credit Extension Act of 2023
New Markets Tax Credit Extension Act of 2023
A bill to amend the Internal Revenue Code of 1986 to permanently extend the new markets tax credit, and for other purposes.
Comments
Sponsors and Cosponsors of S 234
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