S. 384 – New Markets Tax Credit Extension Act of 2017

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Updated April 15, 2026 at 12:49 PM UTC

The New Markets Tax Credit Extension Act of 2017 makes the New Markets Tax Credit permanent, so it continues beyond the original 2010‑2019 deadline. It also adds an inflation‑adjustment mechanism that raises the credit amount each year based on the cost‑of‑living index. The bill provides relief for the alternative minimum tax by allowing the credit for qualified equity investments made after 2016. These changes affect businesses and investors that use the credit to fund projects in low‑income communities.

Key Provisions

Permanently extends the New Markets Tax Credit by removing the 2010‑2019 time limit and applying it to 2010 and every year thereafter
Adds an inflation adjustment that increases the credit amount each year after 2016, rounded to the nearest $1 million
Provides alternative minimum tax relief by allowing the credit for qualified equity investments made after December 31, 2016
Specifies that the amendments apply to taxable years beginning after December 31, 2016, with the AMT relief applying to credits from investments made after that date

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

February 15, 2017

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SenateIntro Referral

Introduced in Senate

February 15, 2017

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

February 15, 2017

Bill Text

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Introduced in SenateIssued February 15, 2017

II

115th CONGRESS

1st Session

S. 384

IN THE SENATE OF THE UNITED STATES

February 15, 2017

Mr. Blunt (for himself, Mr. Cardin, Mr. Schumer, and Mrs. Gillibrand) introduced the following bill; which was read twice and referred to the Committee on Finance

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.