“A bill 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 permanently extends the New Markets Tax Credit—which provides investors a 39% tax credit over seven years on qualified equity investments in certified community development entities serving low-income communities—by (1) extending the $5 billion annual limitation to calendar year 2020 and each calendar year thereafter (from calendar years 2020 through 2025); (2) requiring inflation adjustment of that limitation for calendar years beginning after 2025, based on the cost-of-living adjustment under IRC §1(f)(3) using calendar year 2000 as the base year and rounded to the nearest $1 million; and (3) excluding the credit from the alternative minimum tax limitation for qualified equity investments initially made after December 31, 2024. The changes generally apply to taxable years beginning after December 31, 2024.