Encourage your Senators to Co-Sponsor The New Markets Tax Credit Extension Act of 2011 (S.996 / H.R 2655)

June 7, 2011

U.S. Congress
Washington, DC

Dear Member of Congress:

We write to you as businesses (including non-profit organizations and related public agencies) that have received financing for our work in economically distressed communities through the New Markets Tax Credit. Because of this Credit we have been able to sustain our work, to expand our businesses, to employ community residents, and contribute to economic revitalization in urban and rural communities across the country.

We write to indicate our support for the New Markets Tax Credit Extension Act of 2011 (S. 996 / H.R 2655) and to ask for your co-sponsorship of this important legislation. New Markets Tax Credit (NMTC) investments provide much needed capital to underserved communities and help spur urban and rural revitalization. The New Markets Tax Credit program is one of the most cost-effective ways to create jobs and drive investment in communities with high rates of poverty and unemployment.

The recession has limited the availability of credit, particularly in communities where we work that have been hard-hit by recent economic circumstances. The NMTC program has been an important source of capital and primed the pump for our work with other sources of private sector financing. According to the U.S. Department of Treasury, the NMTC program has generated $12 of outside investment for every $1 of federal investment.

Currently $50 billion in capital has been invested in some of the nation’s most underserved communities. These investments have been used to finance a range of businesses, community facilities and mixed use projects in communities that have been hit particularly hard by the economic slowdown and credit crunch. Examples of projects and businesses financed through New Markets include an airplane parts manufacturer, bakeries, community health centers, high-tech business incubators, a soup kitchen, supermarkets, and worker training facilities.

As a result of NMTCs, hundreds of thousands of construction and full-time jobs have been created, and affordable financing provided for small and medium-sized businesses. The NMTC program has helped support the development of more than 74-million square feet of manufacturing, retail, and community space. Using current Recovery Act standards, this program has helped create or retain an estimated 500,000 jobs. The cost-effective nature of the NMTC makes the federal government’s investment per job created $12,000 compared to other programs that have been estimated to cost an average $92,000.

The bills S. 996 and H.R. 2655 will provide $5 billion in annual New Markets Tax Credit allocation authority for the next five years; through 2016. The annual level of Credit authority as well as the Alternative Minimum Tax exemption included in the bill will ensure the flow of financing to credit starved businesses and to economic development projects in communities with high rates of poverty, unemployment and economic distress.

Please support the New Markets Tax Credit Extension Act of 2011 (S. 996 / H.R. 2655) as a co-sponsor. Thank you for your attention to this matter.

Sincerely,