This bill expands the federal New Markets Tax Credit, a program that encourages investment in low-income communities by allowing investors to claim tax credits on their investments. The legislation makes two key changes: First, it modifies how population is counted for rural counties that have experienced significant migration, directing the Census Bureau to exclude institutionalized populations when determining eligibility, which could help remote or sparsely populated counties qualify for the credit. Second, it creates a special provision for counties where the federal government owns at least 30 percent of the land (excluding military installations and Native American trust lands), lowering the income threshold needed to qualify as a low-income community from 20 percent to 15 percent. Both changes take effect immediately for investments made after the bill's enactment, though the second provision applies specifically to investments made after December 31, 2025. The bill appears designed to help rural and economically challenged areas, particularly in the South, access investment capital more easily through tax incentives.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.