Recognizing the Importance of the New Markets Tax Credit in Revitalizing Economically Distressed Neighborhoods and Communities
Adopted at the 83rd Annual Meeting in 2015
WHEREAS, the New Markets Tax Credit was authorized in the Community Renewal Tax Relief Act of 2000 (PL 106-554) as part of a bipartisan effort to stimulate investment and economic growth in low income urban neighborhoods and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies; and
WHEREAS, the New Markets Tax Credit, between 2003 and 2012, generated $31 billion nationwide in direct investments to businesses, which created approximately 750,000 jobs, at a cost to the federal government of less than $20,000 per job, and these New Markets Tax Credit investments leveraged over $60 billion in total capital investment in businesses located in communities with high rates of poverty and unemployment; and
WHEREAS, the New Markets Tax Credit authorization expired on December 31, 2014, and legislation has been introduced in both houses of the United States Congress to extend and make the Credit permanent, with the Senate bill,"the New Markets Tax Credit Extension Act of 2015" (S. 591) led by Senator Roy Blunt of Missouri, and the House bill,"the New Markets Tax Credit Extension Act of 2015" (H.R. 855) led by Representative Patrick Tiberi of Ohio,
NOW, THEREFORE, BE IT RESOLVED, that The United States Conference of Mayors does hereby support the"New Markets Tax Credit Extension Act" (S. 591 and H.R. 855), which would make certain the New Markets Tax Credit continues to be available as a financial tool for economically distressed communities, spurring investment and revitalizing areas that need it the most. --
Projected Cost: Unknown