“To amend the Internal Revenue Code of 1986 to permanently extend the new markets tax credit, and for other purposes.”
No CRS summary available for this bill.
This section provides the short title of the Act as the “New Markets Tax Credit Extension Act of 2025.”
This section makes the New Markets Tax Credit permanent by extending the authority to allocate credits from calendar years 2020 through 2025 to calendar year 2020 and each calendar year thereafter under section 45D(f)(1)(H) of the Internal Revenue Code of 1986. It also adds an inflation adjustment beginning in calendar year 2026, under which the annual credit allocation amount is increased by the cost-of-living adjustment, with any increase rounded to the nearest $1 million. This section also restores alternative minimum tax relief for the New Markets Tax Credit by allowing the credit under section 45D to offset the alternative minimum tax for credits determined with respect to qualified equity investments initially made after December 31, 2024. (Thus, taxpayers receiving New Markets Tax Credits for new investments made after that date may use the credit against both regular tax and alternative minimum tax liability.)