New Markets Tax Credit Reauthorization Act of 2005

New Markets Tax Credit Reauthorization Act of 2005 - Amends the Internal Revenue Code to extend the new markets tax credit limitation amount of $3.5 million through calendar year 2012 and to adjust such amount for inflation for taxable years beginning after 2008.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3957 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 3957

 To amend the Internal Revenue Code of 1986 to extend the new markets 
                              tax credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 29, 2005

    Mr. Lewis of Kentucky (for himself, Mr. Rangel, Mr. English of 
     Pennsylvania, Mr. Jefferson, and Mrs. Johnson of Connecticut) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to extend the new markets 
                              tax credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``New Markets Tax Credit 
Reauthorization Act of 2005''.

SEC. 2. EXTENSION OF NEW MARKETS TAX CREDIT.

    (a) Extension.--Subsection (f)(1) of section 45D of the Internal 
Revenue Code of 1986 (relating to new markets tax credit) is amended to 
read as follows:
            ``(1) In general.--There is a new markets tax credit 
        limitation of $3,500,000,000 for each of calendar years 2008 
        through 2012.''.
    (b) Inflation Adjustment.--Subsection (f) of such section of such 
Code is amended by inserting at the end the following new paragraph:
            ``(4) Inflation adjustment.--
                    ``(A) In general.--In the case of a taxable year 
                beginning after December 31, 2008, the dollar amount in 
                paragraph (1) shall be increased by an amount equal 
                to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2007' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding rule.--If a dollar amount in 
                paragraph (1), as increased under subparagraph (A), is 
                not a multiple of $1,000,000, such amount shall be 
                rounded to the nearest multiple of $1,000,000.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.
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