New Markets Tax Credit Extension Act of 2025

# New Markets Tax Credit Extension Act of 2025 - Summary **What the Bill Would Do:** This bill would extend the New Markets Tax Credit (NMTC), a federal tax incentive program that encourages investment in economically distressed communities. The program allows investors to receive tax credits when they invest capital in certain low-income neighborhoods and rural areas. By extending this tax credit, the bill aims to continue incentivizing private investment in communities that might otherwise struggle to attract business development and economic growth. **Who It Affects:** The bill would primarily benefit investors and businesses that put money into designated economically disadvantaged areas, as well as the low-income communities receiving those investments.

It could also indirectly affect residents in these areas through job creation and economic development opportunities. Financial institutions and investment funds that manage these investments would also be impacted. **Current Status:** The bill (HR 1103) was introduced by Representative Claudia Tenney (R-NY) in the 119th Congress and is currently in committee, meaning it has not yet advanced to a full House vote. The bill remains in the early stages of the legislative process.