New Markets Tax Credit Extension Act of 2025
Sponsored By: Senator Daines, Steve [R-MT]
Introduced
Summary
Permanently extends the New Markets Tax Credit to keep the program available after 2025. It would also add an inflation adjustment for credit amounts after 2025 and provide limited alternative minimum tax relief for credits tied to new qualified equity investments made after December 31, 2024.
Show full summary
- Community developers and low-income areas: would keep access to NMTC financing beyond 2025, and future credit values would rise with an inflation adjustment for calendar years after 2025.
- Investors who make qualified equity investments after December 31, 2024: would get AMT relief specifically for the 45D credits tied to those new investments.
- Taxpayers and tax planners: the general changes apply to taxable years beginning after December 31, 2024, and the inflation adjustment uses the bill’s cost-of-living formula with a specified base-year substitution.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
AMT relief for New Markets investors
If enacted, the bill would let investors use New Markets Tax Credits to reduce Alternative Minimum Tax, but only for credits tied to qualified equity investments initially made after December 31, 2024. This change would not change the dollar amount of the credit itself. It simply allows certain later investments' credits to offset AMT liability.
Permanent New Markets tax credit
If enacted, the bill would make the New Markets Tax Credit allocation authority continue after 2025 by allowing allocations for calendar year 2020 and each calendar year thereafter. It would also require that the dollar amount used for annual allocations be increased for calendar years beginning after 2025 by a cost‑of‑living adjustment. That COLA uses the section 1(f)(3) measure with 'calendar year 2000' substituted for 2016, and any increase not a multiple of $1,000,000 would be rounded to the nearest $1,000,000. The change would not change the credit rate itself or set the base dollar amount in the statute.
Sponsors & CoSponsors
Sponsor
Daines, Steve [R-MT]
MT • R
Cosponsors
Sen. Warner, Mark R. [D-VA]
VA • D
Sponsored 2/6/2025
John Boozman
AR • R
Sponsored 2/6/2025
Peter Welch
VT • D
Sponsored 2/6/2025
Sen. Cassidy, Bill [R-LA]
LA • R
Sponsored 2/6/2025
Charles Schumer
NY • D
Sponsored 2/6/2025
Cindy Hyde-Smith
MS • R
Sponsored 2/6/2025
Sen. Shaheen, Jeanne [D-NH]
NH • D
Sponsored 2/6/2025
Sen. Ricketts, Pete [R-NE]
NE • R
Sponsored 2/6/2025
Amy Klobuchar
MN • D
Sponsored 2/6/2025
Sen. Moran, Jerry [R-KS]
KS • R
Sponsored 2/6/2025
Sen. Cantwell, Maria [D-WA]
WA • D
Sponsored 2/6/2025
Roger Wicker
MS • R
Sponsored 2/6/2025
John Hickenlooper
CO • D
Sponsored 2/6/2025
Sen. Blackburn, Marsha [R-TN]
TN • R
Sponsored 2/6/2025
Sen. Booker, Cory A. [D-NJ]
NJ • D
Sponsored 2/6/2025
Sen. Sheehy, Tim [R-MT]
MT • R
Sponsored 2/10/2025
Sen. Kelly, Mark [D-AZ]
AZ • D
Sponsored 2/10/2025
John Hoeven
ND • R
Sponsored 2/24/2025
Sen. Van Hollen, Chris [D-MD]
MD • D
Sponsored 2/24/2025
Sen. Scott, Tim [R-SC]
SC • R
Sponsored 4/29/2025
Gary Peters
MI • D
Sponsored 4/29/2025
Sen. Rosen, Jacky [D-NV]
NV • D
Sponsored 5/13/2025
Shelley Capito
WV • R
Sponsored 5/13/2025
Katie Britt
AL • R
Sponsored 6/3/2025
Sen. Hassan, Margaret Wood [D-NH]
NH • D
Sponsored 6/3/2025
Roll Call Votes
No roll call votes available for this bill.
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