An economic development program that is creating jobs and spurring billions of dollars of economic activity in low-income communities across America expires in 2019, but support is growing for the credit to be made permanent.
Called the New Market Tax Credit (NMTC), the NMTC incentivizes those with capital to invest it in low-income and severely distressed communities where it can help revitalize economies, create jobs, and enable entrepreneurs to realize their dreams.
Investing in Innovation in America
The NMTC is also inspiring innovative solutions to urgent issues. For example, China was a big buyer of US recyclables in the past, but stopped purchasing most of it earlier this year. This left US recyclers scrambling to find a new market for their goods.
NMTC has invested in companies working on new ways to transform recyclable materials into valuable products right here in the US.
Credit Gives a Boost to US Jobs and Health
The numbers speak volumes about what there is to gain by making the NMTC permanent. According to Bob Ripoza, spokesperson for the NMTC Coalition, the Credit created more than 1 million jobs between 2003 and 2015 alone.
Within that same time period, the Credit financed 2,000 projects including non-profit service providers, hospitals, schools, and childcare centers. It also boosted tax revenue to state and local governments to the tune of $6.7 billion.
NMTC By the Numbers
During 2003 and 2015, the New Market Tax Credit:
● Financed healthcare projects that served 17 million patients
● Funded schools and early-childhood learning centers serving 250,000 students and children
● Spurred $156 billion in economic activity in low-income rural and urban communities.