Bill > S479

This bill permanently extends the New Markets Tax Credit (NMTC), a federal tax incentive designed to encourage investment in low-income and economically distressed communities. Specifically, the bill amends the Internal Revenue Code to make the NMTC available for calendar year 2020 and each subsequent calendar year, removing the previous expiration date of 2025. The legislation also introduces an inflation adjustment mechanism that will increase the dollar amount of the tax credit annually based on the cost of living, ensuring the credit's value remains relevant over time. Additionally, the bill provides alternative minimum tax relief by allowing the NMTC to be used against the alternative minimum tax for qualified equity investments made after December 31, 2024. These changes aim to provide more stable and predictable funding for community development projects by making the tax credit a permanent part of the tax code and protecting its value against inflation. The amendments will generally apply to taxable years beginning after December 31, 2024, helping to support continued investment in economically challenged areas across the United States.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/479/all-info