Reauthorizing New Markets Tax Credits The New Markets Tax Credit Coalition has led the effort to extend the New Markets Tax Credit. This effort includes five-year reauthorization legislation, an additional billion dollars of Credits targeted to the Gulf states and a one-year extension of the Credit passed in separate bills in the House and the Senate. For additional information, please see details below:
- In September of 2005, five-year authorization bills ( H.R. 3957 & S.1800) were introduced in the House and the Senate by Rep. Ron Lewis (R-KY) and Senator Olympia Snowe (R-ME), respectively, and co-sponsored by a bipartisan coalition list of Members of Congress;
- In November 2005, in response to Hurricanes Rita & Katrina, Congress enacted the Gulf Opportunity Zone Act (H. R. 4440), which included $1 billion in additional New Markets Tax Credit volume targeted to the Gulf States;
- In November 2005, the Senate took up tax reconciliation (S. 2020) which included an extension of New Markets Tax Credits through 2008 at $3.5 billion in volume. This "down payment" on the five-year authorization also included a provision better targeting the Credit to non-metro areas. The Senate passed the legislation by a wide marin; and
- In August 2006, the House considered and passed legislation to raise the minimum wage, make permanent estate tax relief and extend expiring tax credits (H.R. 5970). This bill included the Senated-passed provisions on New Markets. The Senate refused to take the so-called "Trifecta".
- When Congress returns in the fall, it may either reconsider the "Trifecta" or postpone consideration of tax extenders until a lame duck session which will convene after the November elections.
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