July 18, 2025

By Pete Byford, Principal | Tax Credit Consulting

The New Markets Tax Credit (NMTC) program has achieved a significant milestone with its permanent extension through the recent passage of H.R.1. This legislative action ensures the NMTC program remains a steadfast component of the Internal Revenue Code, providing $5 billion in annual allocation authority to stimulate private investment in low-income communities nationwide.

Our Commitment to NMTC Permanency

We have long championed NMTC’s role in revitalizing underserved areas by offering tax incentives to investors who support community development projects. Our efforts have included active participation in advocacy initiatives, collaboration with policymakers, and engagement with stakeholders to underscore the program’s impact. The permanency of the NMTC aligns with our mission to foster economic growth and opportunity in communities that need it most.  

Anticipated Outcomes of NMTC Permanency

The permanent status of the NMTC is poised to yield substantial benefits:

  • Enhanced Investment Stability: Investors and community development entities can now plan long-term projects with greater confidence, knowing that NMTC will remain a consistent resource.
  • Job Creation and Economic Growth: NMTC has been instrumental in creating over 1.2 million jobs and attracting more than $143 billion in capital investments. Its permanency should significantly increase these outcomes, especially in rural and economically distressed areas.
  • Community Development: The NMTC program has supported the development of essential community facilities, including healthcare centers, schools, and affordable housing. Permanent authorization will facilitate the expansion of such projects, improving quality of life for residents.

We remain dedicated to leveraging NMTC to drive meaningful change in underserved communities. By working with investors, developers, and local organizations, we aim to maximize the program’s impact and contribute to sustainable economic development across the nation.

Learn More

For more information on how we can support NMTC-funded projects, contact our Tax Credit Consulting team.