New York, NY (PRWEB) June 11, 2012
Friday, June 8, Congressman Pat Tiberi (R-OH), Chairman of the House Ways and Means Committee Subcommittee on Select Revenue Measures held a hearing to evaluate the framework that Congress should use to assess whether to extend certain tax provisions that either expired in 2011 or will expire in 2012, including New Market Tax Credits (NMTC) and the Low-income Housing Tax Credit (LIHTC). This follows on the heels of an April 26, 2012, Subcommittee hearing on proposals related to tax extenders. At that hearing, Robert W. Davenport, president of the National Development Council (NDC) http://nationaldevelopmentcouncil.org submitted testimony and evidence stressing the importance of extending the NMTC, which expired on December 31, 2011 and the passage of HR 2655, the New Markets Tax Credit Extension Act of 2011. While the June 8 hearing is intended to focus on the principles of good tax policy that Congress should apply during this evaluation, and the specific metrics against which Congress should test the merits of particular provisions, individual provisions, like NMTC, may be discussed for the purpose of illustrating how to use such principles and metrics.
Established in 1969, NDC is one of the nation’s oldest non-profit community development organizations. Its mission is to create economic opportunity for disadvantaged Americans, to create jobs for the unemployed, and to provide quality affordable housing to underserved urban and rural areas across the country. NDC has become one of the nation’s most active participants in the NMTC program. To date deploying more than $560 million of NMTC leveraging over $1.2 billion in 70 NMTC projects across 27 states.
“NDC has worked in low income communities for nearly half a century,” said Davenport. “We have seen federal initiatives come and go. To create economic opportunity for low income areas we have used them all. Through experience, we have learned what works and what doesn’t work. From our perspective, the NMTC program really works for America and is effective government in action.”
The NMTC program was enacted through a bi-partisan collaboration of Republicans and Democrats in the late 1990s. Enacted under President Clinton and implemented under President Bush, the NMTC program has proven to be one of the most vital, cost effective, flexible, and resilient tools for stimulating investment in underserved communities across America. NMTCs create jobs, economic opportunity, entrepreneurship, community pride and esteem in America’s poorest communities. 73 percent of NMTC investments occur in designated areas of extreme economic distress. In Spartanburg SC, for example, NDC’s $7.3 million NMTC investment created a community shopping center for the distressed southside community that includes a grocery store, a minority owned pharmacy, an apparel store, a credit union, and several additional women and minority owned and self-sustaining businesses. The project created 35 permanent jobs and 75 construction jobs.
When the sharp downturn in the US economy occurred in 2008, nearly every form of conventional financing dried up, especially in low income communities, but the NMTC program flourished. NMTC activity levels increased each year as the recession set in. Without the NMTC program, billions of dollars of investments in our lowest income communities would have been thwarted.
Congress has extended NMTC four times and since 2008 has added $17 billion in credit authority bringing the total program amount to $33 billion.
About National Development Council
Established in 1969, NDC http://nationaldevelopmentcouncil.org is one of the nation’s oldest non-profit community development organizations. Its mission is to create economic opportunity for disadvantaged Americans, to create jobs for the unemployed, and to provide quality affordable housing to underserved urban and rural areas across the country. NDC has become one of the nation’s most active participants in the NMTC program. To date deploying more than $560 million of NMTC leveraging over $1.2 billion in 70 NMTC projects across 27 states.