WASHINGTON, D.C. –Senator Steve Daines today announced that he has introduced bipartisan legislation to encourage investment, job creation and economic growth in Montana and across the nation.
Daines joined Senators Roy Blunt (R-MO), Chuck Schumer (D-NY) and Ben Cardin (D-MD) in introducing the New Markets Tax Credit Extension Act of 2015. This legislation would make permanent the New Markets Tax Credit (NMTC) program, provide an annual allocation of credits indexed to inflation, and exempt NMTC investments from the Alternative Minimum Tax.
NMTC attracts capital to low-income communities by providing private investors with a 39 percent federal tax credit for investments made in businesses or economic development projects.
“The New Markets Tax Credit has stimulated over $85 million of investment in Montana since 2013 alone,” Daines stated. “It is a proven vehicle that spurs private development, creates good paying jobs and increases economic opportunity. This legislation is a much-needed step towards a permanent extension that will help secure the economic stability of our communities and sustain healthy local economies across the nation.”
The NMTC has already stimulated millions of dollars investment in Montana. The NMTC program can be credited directly or indirectly with the creation of over 1,000 construction jobs and over 700 full time positions. More than 13 businesses in Montana have received financing from the NMTC since 2003.
The NMTC program in Montana has helped move forward numerous community projects over the past ten years, including:
- The Bullhook Community Health Center in Havre, Montana provides health care to Montanans regardless of their ability to pay. Approximately 75% of patients are low-income. Before the NMTC program they were operating out of several different offices in Havre. They received $7.3 million in NMTC allocation and had 34.5 jobs created or retained and created 25 new construction jobs. The credit allowed them to consolidate to a new, single facility at 17,522 square feet to fit their needs allowing the Health Center to increase the number of people they could serve annually, improving access to health care for low-income people.
- The Poverello Center in Missoula, Montana is Missoula’s only homeless shelter. It was operating out of a 100-year-old building that frequently operated over capacity, the building lacked ADA compliance and the daily maintenance of the heating and plumping greatly burdened the operation of the facility. They received $5.9 million in NMTC allocation and had 43 jobs either created or retained and created 35 new construction jobs. The new facility at 18,500 square feet is the right size and designed for efficiency, allowing the Poverello to provide critical services to Montanans.
Background on the New Markets Tax Credit Extension Act:
In the House, Daines was cosponsor of the New Markets Tax Credit Extension Act of 2014. The NMTC program expired on December 31, 2014. Congress first authorized the NMTC program as part of the Community Renewal Tax Relief Act of 2000.
Between 2003 and 2012, over $31 billion in direct NMTC investments created some 750,000 jobs. These NMTC investments leveraged an additional $31 billion in capital from other sources, all of which was invested in communities with high poverty and unemployment rates. While all NMTC investments benefit businesses and projects in low-income communities, NMTC does not target a specific type of business or sector. Decision-making on NMTC investments is at the local level, not in Washington.
In 2012 alone, NMTC investments generated almost $1 billion in federal tax revenue, easily offsetting the estimated $720 million cost of the program for the federal government.
The full text of the bill is available here.