New Markets Tax Credit Extension Act of 2023
This bill makes the new markets tax credit permanent. It also modifies the credit to (1) provide for an inflation adjustment to the limitation amount for the credit after 2023, and (2) allow an offset against the alternative minimum tax for the credit (determined with respect to qualified equity investments initially made after 2022).
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2539 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 2539
To amend the Internal Revenue Code of 1986 to permanently extend the
new markets tax credit, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 6, 2023
Ms. Tenney (for herself, Mr. Kelly of Pennsylvania, Ms. Sewell, Mr.
Davis of Illinois, Mrs. Miller of West Virginia, Mr. Ferguson, Mr.
Fitzpatrick, Mr. Schweikert, Mr. Smucker, Mr. Wenstrup, Mr. LaHood, Mr.
Yakym, Mr. Steube, Mr. Carey, Mr. Buchanan, Ms. Van Duyne, Mr.
Blumenauer, Ms. Sanchez, Mr. Higgins of New York, Ms. DelBene, Ms. Chu,
Ms. Moore of Wisconsin, Mr. Kildee, Mr. Beyer, Mr. Evans, and Mr.
Panetta) 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 permanently extend the
new markets tax credit, and for other purposes.
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 Extension Act
of 2023''.
SEC. 2. PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT.
(a) Extension.--
(1) In general.--Subparagraph (H) of section 45D(f)(1) of
the Internal Revenue Code of 1986 is amended by striking ``for
each of calendar years 2020 through 2025'' and inserting
``calendar year 2020 and each calendar year thereafter''.
(2) Conforming amendment.--Section 45D(f)(3) of such Code
is amended by striking the last sentence.
(b) Inflation Adjustment.--Subsection (f) of section 45D of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new paragraph:
``(4) Inflation adjustment.--
``(A) In general.--In the case of any calendar year
beginning after 2023, the dollar amount in paragraph
(1)(H) 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, determined by substituting
`calendar year 2000' for `calendar year 2016'
in subparagraph (A)(ii) thereof.
``(B) Rounding rule.--Any increase under
subparagraph (A) which is not a multiple of $1,000,000
shall be rounded to the nearest multiple of
$1,000,000.''.
(c) Alternative Minimum Tax Relief.--Subparagraph (B) of section
38(c)(4) of the Internal Revenue Code of 1986 is amended--
(1) by redesignating clauses (vii) through (xii) as clauses
(viii) through (xiii), respectively, and
(2) by inserting after clause (vi) the following new
clause:
``(vii) the credit determined under section
45D, but only with respect to credits
determined with respect to qualified equity
investments (as defined in section 45D(b))
initially made after December 31, 2022,''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2022.
(2) Alternative minimum tax relief.--The amendments made by
subsection (c) shall apply to credits determined with respect
to qualified equity investments (as defined in section 45D(b)
of the Internal Revenue Code of 1986) initially made after
December 31, 2022.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line