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OFN is monitoring several key tax programs designed to bring more private capital to communities where CDFIs operate.
Throughout 2023, the OFN policy team has been working hard to advocate for and represent mission lenders on Capitol Hill and beyond. With Washington slowing down in August while Congress is in recess, we are taking stock of our progress.
We are sharing a series of updates across all OFN federal policy priorities that advance our shared 2023 policy agenda.
OFN’s public policy team wants to ensure robust private investment in the communities CDFIs serve. Below are some key tax bills we are keeping our eyes on:
First up is the New Markets Tax Credit Extension Act of 2023. This bill would make the New Markets Tax Credit (NMTC) permanent and index it to inflation, providing ongoing incentives for investments that grow stronger, more vibrant communities.
- Senate: Ben Cardin (D-MD), Steve Daines (R-MT)
- House: Terri Sewell (D-AL), Claudia Tenney (R-NY)
This bill is all about increasing community support in rural areas. It will add an extra $500 million a year to NMTC allocations for two years. This incentive is specially earmarked for rural communities, persistent poverty counties, and rural counties with shrinking populations (domestic migration).
- Senate: Roger Wicker (R-MS), Mark Warner (D-VA)
- House: Carol Miller (R-WV), Terri Sewell (D-AL)
This bill aims to boost private investment to revitalize communities by rehabilitating old properties. The bill allows a business-related tax credit for certain development costs for residential housing, giving qualified properties a second chance while giving businesses an incentive to invest.
- Senate: Todd Young (R-IN), Ben Cardin (D-MD)
- House: Mike Kelly (R-PA), Brian Higgins (D-NY)
Each of these bills has implications for CDFIs and other mission lenders, and provides blueprints to build stronger communities. Stay tuned for more updates! In the meantime, use our toolkit to contact your representatives in Congress on the issues that matter most to you.
Read other updates in the series:
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