Administrative Budget Would Permanently Extend NMTC

WASHINGTON – Feb. 2, 2015 – In its proposed budget for fiscal year (FY) 2016, the Obama administration proposes to permanently reauthorize the New Markets Tax Credit (NMTC) program in 2016 and requests $5 billion of allocation authority per year, as well as authority to offset alternative minimum tax (AMT) liability. The budget also proposes a new Manufacturing Communities Tax Credit (MCTC), with $2 billion in tax credit authority in each of three years through 2018. The proposal would also allow the Community Development Financial Institutions (CDFI) Bond Guarantee program to continue operating with a cap of $1 billion per year, but with no budgetary cost for new issuances.

Tune into the Feb. 3 episode of the Tax Credit Tuesday podcast for more information on the proposed budget.

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