Rockefeller, Snowe Introduce Legislation to Promote Economic Growth in Low-Income Communities

 WASHINGTON, D.C. – U.S. Senators Jay Rockefeller (D-WV) and Olympia J. Snowe (R-ME) today introduced the New Markets Tax Credit Extension Act of 2007, which would extend the New Markets Tax Credit Program (NMTC) for five years through 2013, adjusted for inflation.  The NMTC has a longstanding history of promoting investment and economic growth opportunities in low-income, rural communities. Last year, Senators Rockefeller and Snowe were successful in securing a one-year extension for the program through 2008.

             “The New Markets Tax Credit has been a priority of mine since its inception,” said Rockefeller. “We created this program seven years ago to stimulate investment and economic growth and it has been overwhelmingly successful.  Investors have created growth and new jobs – making a real difference in small towns across the country. Where abandoned buildings and closed store fronts once were, real estate and commercial development have now brought life and prospect back into low-income communities.  By providing investors with sufficient tax incentives, the program has given families and businesses in distressed neighborhoods a new sense of economic hope and opportunity."

 “Since its inception, the New Markets Tax Program has made major investments in low-income communities in Maine and throughout the country,” said Senator Snowe.  “It is imperative that Congress reauthorizes this essential program for a full five years to ensure that Congress invests in our rural communities that depend on these economic tools to thrive.”

            The NMTC program was enacted in December 2000 as part of the Community Renewal Tax Relief Act and is administered by the Department of the Treasury through the Community Development Financial Institutions Fund. The purpose of the Credit is to stimulate increased investment and economic growth in low-income communities.

            NMTC offers a seven-year, 39 percent federal tax credit for Qualified Equity Investments made through investment vehicles known as Community Development Entities (CDEs). CDEs use private capital derived from tax credits to make loans to or investments in businesses and projects in low-income communities.

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