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Tenney introduces tax credit bill to assist rural developers

By Press Release
Apr 6, 2023, 6:46pm

Press release:

Congresswoman Claudia Tenney (NY-24), a member of the House Ways and Means Committee, introduced the New Markets Tax Credit Extension (NMTC) Act of 2023. This bipartisan legislation would make the NMTC permanent, index the allocation to inflation in future years, and exempt NMTC investments from the Alternative Minimum Tax.

Tenney led this piece of legislation alongside Rep. Kelly (R-PA), Rep. Sewell (D-AL), and Rep. Davis (D-IL). Additional cosponsors include Rep. Miller (R-WV), Rep. Ferguson (R-GA), Rep. Fitzpatrick (R-PA), Rep. Schweikert (R-AZ), Rep. Smucker (R-PA), Rep. Wenstrup (R-OH), Rep. LaHood (R-IL), Rep. Yakym III (R-IN), Rep. Steube (R-FL), Rep. Carey (R-OH), Rep. Buchanan (R-FL), Rep. Van Duyne (R-TX), Rep. Blumenauer (D-OR), Rep. Sánchez (D-CA), Rep. Higgins (D-NY), Rep. DelBene (D-WA), Rep. Chu (D-CA), Rep. Moore (D-WI), Rep. Kildee (D-MI), Rep. Beyer (D-VA), Rep. Evans (D-PA), Rep. Panetta (D-CA).

Set to expire on December 31, 2025, the New Markets Tax Credit was established in the Community Renewal Tax Relief Act of 2000 (PL 106-554) and is an essential source of financing for businesses and community facilities in low-income and rural areas across the country. Private investors will receive a 39 percent tax credit distributed over seven years for qualified investments into Community Development Entities (CDEs). These CDEs use the proceeds of those investments to finance business expansions, health centers, daycare facilities, business incubators, and other essential revitalization projects. 

Since its inception, the NMTC has supported over a million jobs and invested billions into communities, including across New York's 24th District. A recent investment in Batavia, NY, will support the construction of the "Healthy Living Campus," a multimillion-dollar investment that will support the partnership between GLOW YMCA and United Memorial Medical Center. This project will create or retain nearly 400 quality jobs in the community.

“Now more than ever, it is essential that we work to create investments in our rural and low-income communities,” said Congresswoman Tenney. “Rural America is often forgotten by the Washington elites, which means that rural communities sometimes lack the necessary resources to invest, grow, and expand. Congress must make the New Markets Tax Credit permanent to allow our rural communities to continue accessing this important resource which helps to create jobs and stimulate economic growth. As a small business owner from rural America, I will always be a tenacious advocate for investments in our rural communities and businesses in Congress.”

Photo: File photo by Howard Owens

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