NMTC Extension

New Markets Tax Credit Program Receives 5-year, $25B Extension

The federal New Markets Tax Credit (NMTC) program received a 5-year, $25 billion extension as part of the Consolidated Appropriations Act of 2021. While much of the attention around this bill (rightfully) focused on the COVID-19 stimulus package, the NMTC extension is significant for impact development over the next 5 years and deserves recognition. The extension is the largest in the program’s history, surpassing the $17.5 billion extension authorized in 2015. It was one of only two tax credits to receive a 5-year extension.

The authorization drew praise from the NMTC coalition, an organization whose primary role is to advocate for the NMTC program. With the potential for $5 billion in annual impact, the program is set to support increased investments in manufacturing centers, mixed-use projects, health facilities, and community facilities, all in qualified low-income communities (LICs). The program is expected to generate around 590,000 jobs. 

In an increasingly polarized political climate, the NMTC program receives consistent, bipartisan support from lawmakers, who continue to reauthorize and increase the program’s funding. The NMTC program continues to be one of the most important tools the federal government uses to support sustainable and equitable development in distressed communities. At LifeCity, we support the mission of the NMTC program, and we look forward to working with CDEs to maximize the impact of this program for the next 5 years and beyond.