H.R. 1103: New Markets Tax Credit Extension Act of 2025
This bill, titled the New Markets Tax Credit Extension Act of 2025, aims to permanently extend the New Markets Tax Credit established under the Internal Revenue Code. Here’s a breakdown of its main provisions:
1. Permanent Extension of the New Markets Tax Credit
The bill seeks to amend the relevant tax laws to remove the current expiration date of the New Markets Tax Credit, allowing it to remain in effect indefinitely. Specifically:
- The language stating that the credit applies only for calendar years 2020 through 2025 will be replaced, enabling the credit to apply to 2020 and all subsequent years.
2. Inflation Adjustment
The bill also introduces a provision for adjusting the New Markets Tax Credit amounts based on inflation. This means that starting in 2026 and for each year thereafter, the dollar amount of the credit will be increased to reflect changes in the cost of living. The adjustments will be computed by:
- Multiplying the current dollar amount of the credit by a cost-of-living adjustment factor.
- A rounding rule is included, ensuring any increase that is not a multiple of $1,000,000 will be rounded to the nearest million.
3. Alternative Minimum Tax Relief
In addition to the above, the bill provides modifications concerning the alternative minimum tax (AMT). It amends the tax code to ensure that the New Markets Tax Credit will be taken into account for AMT calculations for specific qualified equity investments made after December 31, 2024. This is aimed at providing tax relief and promoting investments in qualified areas.
4. Effective Dates
The changes proposed in the bill will generally take effect for tax years beginning after December 31, 2024, with specific provisions for the alternative minimum tax relief applying to investments made after that date.
Relevant Companies
- AXP (American Express): The company may experience an increased demand for investments in areas eligible for the New Markets Tax Credit, potentially benefiting its financial services.
- JPM (JPMorgan Chase & Co.): As a major bank involved in financing projects in new markets, the extension of the credit may enhance JPMorgan's investment opportunities in underserved communities.
- C (Citigroup Inc.): Similar to JPMorgan, Citigroup might leverage the extended tax credit to support its community investing strategies.
This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
55 bill sponsors
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TrackClaudia Tenney
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TrackDon Bacon
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TrackJack Bergman
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TrackDonald S. Beyer, Jr.
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TrackSanford D. Bishop, Jr.
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TrackShontel M. Brown
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TrackVern Buchanan
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TrackMike Carey
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TrackJudy Chu
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TrackHerbert Conaway
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TrackJason Crow
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TrackDanny K. Davis
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TrackDonald G. Davis
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TrackSuzan K. DelBene
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TrackMario Diaz-Balart
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TrackRandy Feenstra
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TrackBrad Finstad
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TrackMichelle Fischbach
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TrackBrian K. Fitzpatrick
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TrackDaniel S. Goldman
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TrackJimmy Gomez
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TrackLance Gooden
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TrackMaggie Goodlander
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TrackChrissy Houlahan
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TrackMike Kelly
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TrackDavid Kustoff
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TrackDarin LaHood
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TrackJohn B. Larson
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TrackSeth Magaziner
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TrackTracey Mann
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TrackBetty McCollum
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TrackCarol D. Miller
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TrackMax L. Miller
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TrackGwen Moore
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TrackNathaniel Moran
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TrackJoseph D. Morelle
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TrackFrank J. Mrvan
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TrackJoe Neguse
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TrackIlhan Omar
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TrackJimmy Panetta
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TrackChris Pappas
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TrackChellie Pingree
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TrackHarold Rogers
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TrackTerri A. Sewell
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TrackLloyd Smucker
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TrackElise M. Stefanik
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TrackW. Gregory Steube
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TrackEmilia Strong Sykes
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TrackLinda T. Sánchez
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TrackMichael R. Turner
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TrackBeth Van Duyne
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TrackDerrick Van Orden
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TrackGabe Vasquez
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TrackEugene Vindman
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TrackRudy Yakym III
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Actions
2 actions
| Date | Action |
|---|---|
| Feb. 06, 2025 | Introduced in House |
| Feb. 06, 2025 | Referred to the House Committee on Ways and Means. |
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