LISC applauds extension of New Markets Tax Credit, strengthening of Housing Credit in fiscal cliff legislation

Congress has given low-income neighborhoods the capacity to attract new businesses, create jobs, build more affordable housing and generate economic opportunity for residents with its inclusion of two important community-focused tax credits in its New Year’s tax package.

HR 8—passed by both the House and Senate on Tuesday in response to the fiscal cliff—renews the New Markets Tax Credit, which supports business development in high-poverty neighborhoods, through 2013.  It also makes a technical change that preserves the value of the Low Income Housing Tax Credit, which connects private capital to the development of rental housing that is affordable to low-income families, seniors and special needs residents.

Together, these two programs represent some $14 billion annually in private capital focused on community recovery, as well as 160,000 jobs each year.



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