H.R. 1098 – New Markets Tax Credit Extension Act of 2017

AI-Generated Summary

Updated April 15, 2026 at 1:03 PM UTC

The New Markets Tax Credit Extension Act of 2017 makes the New Markets Tax Credit permanent, removing its original expiration in 2019. It also updates the credit amount each year for inflation and gives tax‑benefit relief for investors whose credits are subject to the Alternative Minimum Tax. The changes affect businesses and investors that use the credit to fund projects in low‑income communities.

Key Provisions

Removes the 2010‑2019 limitation on the New Markets Tax Credit, making the credit available for 2010 and every year thereafter.
Adds an inflation‑adjustment formula that increases the credit amount each year after 2016 based on the cost‑of‑living index, rounding the increase to the nearest $1 million.
Provides relief from the Alternative Minimum Tax for NMTC credits tied to qualified equity investments made after December 31, 2016.
Specifies that the changes apply to taxable years beginning after December 31, 2016, with the AMT relief applying only to credits from investments made after that date.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

2 earlier actions

HouseFloor Latest Action

ASSUMING FIRST SPONSORSHIP - Mr. Reed asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 1098, a bill originally introduced by Representative Tiberi, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.

January 30, 2018 • 1:53 PM

View full timeline

HouseIntro Referral

Introduced in House

February 15, 2017

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

February 15, 2017

HouseFloor

ASSUMING FIRST SPONSORSHIP - Mr. Reed asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 1098, a bill originally introduced by Representative Tiberi, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.

January 30, 2018 • 1:53 PM

Floor Debate

1 member

What members said about H.R. 1098 on the floor

1 Republican

Rep. Tom ReedR-NY-23 · Jan 30, 2018

Mr. Speaker, I ask unanimous consent that I may hereafter be considered to be the first sponsor of H.R. 1098, a bill originally introduced by Representative Tiberi of Ohio, for the purposes of adding…

Bill Text

Latest available legislative text

Reading Mode

Raw Text PDF XML

Introduced in HouseIssued February 15, 2017

I

115th CONGRESS

1st Session

H. R. 1098

IN THE HOUSE OF REPRESENTATIVES

February 15, 2017

Mr. Tiberi (for himself, Mr. Neal, Mr. Reed, Mr. Kelly of Pennsylvania, Mr. Meehan, Mr. McKinley, Mr. Kind, Mr. Higgins of New York, Mr. Smith of Missouri, Mr. Paulsen, Mr. Blumenauer, Mr. Danny K. Davis of Illinois, Mr. Thompson of California, Mr. Pascrell, Ms. Sewell of Alabama, Mr. Larson of Connecticut, Ms. Sánchez, Mr. Turner, Mr. Joyce of Ohio, Mr. Johnson of Ohio, Mr. Stivers, and Mr. Renacci) 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.

1.

Short title

This Act may be cited as the New Markets Tax Credit Extension Act of 2017.

2.

Permanent extension of new markets tax credit

(a)

Extension

(1)

In general

Subparagraph (G) of section 45D(f)(1) of the Internal Revenue Code of 1986 is amended by striking for each of calendar years 2010 through 2019 and inserting for calendar year 2010 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 2016, the dollar amount in paragraph (1)(G) 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 1992 in subparagraph (B) 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 (v) through (xi) as clauses (vi) through (xii), respectively, and

(2)

by inserting after clause (iv) the following new clause:

(v)

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, 2016,

.

(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, 2016.

(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, 2016.