I
119THCONGRESS
1
STSESSION H. R. 1103
To amend the Internal Revenue Code of 1986 to permanently extend the
new markets tax credit, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY6, 2025
Ms. T
ENNEY(for herself, Mr. KELLYof Pennsylvania, Ms. SEWELL, Mr.
D
AVISof Illinois, Ms. MOOREof Wisconsin, Ms. VANDUYNE, Ms.
S
A´NCHEZ, Mrs. MILLERof West Virginia, Ms. DELBENE, Mr.
B
UCHANAN, Mr. LAHOOD, Mr. GOMEZ, Mr. BEYER, Mr. PANETTA, Mr.
Y
AKYM, Mr. MILLERof Ohio, Ms. CHU, Mr. FEENSTRA, Mr. CAREY, Mr.
S
MUCKER, Mr. FITZPATRICK, Mr. STEUBE, Mr. MORAN, and Mrs.
F
ISCHBACH) introduced the following bill; which was referred to the Com-
mittee 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.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘New Markets Tax 4
Credit Extension Act of 2025’’. 5
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SEC. 2. PERMANENT EXTENSION OF NEW MARKETS TAX 1
CREDIT. 2
(a) E
XTENSION.— 3
(1) I
N GENERAL.—Subparagraph (H) of section 4
45D(f)(1) of the Internal Revenue Code of 1986 is 5
amended by striking ‘‘for each of calendar years 6
2020 through 2025’’ and inserting ‘‘calendar year 7
2020 and each calendar year thereafter’’. 8
(2) C
ONFORMING AMENDMENT .—Section 9
45D(f)(3) of such Code is amended by striking the 10
last sentence. 11
(b) I
NFLATIONADJUSTMENT.—Subsection (f) of sec-12
tion 45D of the Internal Revenue Code of 1986 is amend-13
ed by adding at the end the following new paragraph: 14
‘‘(4) I
NFLATION ADJUSTMENT .— 15
‘‘(A) I
N GENERAL.—In the case of any cal-16
endar year beginning after 2025, the dollar 17
amount in paragraph (1)(H) shall be increased 18
by an amount equal to— 19
‘‘(i) such dollar amount, multiplied by 20
‘‘(ii) the cost-of-living adjustment de-21
termined under section 1(f)(3) for the cal-22
endar year, determined by substituting 23
‘calendar year 2000’ for ‘calendar year 24
2016’ in subparagraph (A)(ii) thereof. 25
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‘‘(B) ROUNDING RULE .—Any increase 1
under subparagraph (A) which is not a multiple 2
of $1,000,000 shall be rounded to the nearest 3
multiple of $1,000,000.’’. 4
(c) A
LTERNATIVEMINIMUMTAXRELIEF.—Subpara-5
graph (B) of section 38(c)(4) of the Internal Revenue 6
Code of 1986 is amended— 7
(1) by redesignating clauses (vii) through (xii) 8
as clauses (viii) through (xiii), respectively, and 9
(2) by inserting after clause (vi) the following 10
new clause: 11
‘‘(vii) the credit determined under sec-12
tion 45D, but only with respect to credits 13
determined with respect to qualified equity 14
investments (as defined in section 45D(b)) 15
initially made after December 31, 2024,’’. 16
(d) E
FFECTIVEDATES.— 17
(1) I
N GENERAL.—Except as provided in para-18
graph (2), the amendments made by this section 19
shall apply to taxable years beginning after Decem-20
ber 31, 2024. 21
(2) A
LTERNATIVE MINIMUM TAX RELIEF .—The 22
amendments made by subsection (c) shall apply to 23
credits determined with respect to qualified equity 24
investments (as defined in section 45D(b) of the In-25
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ternal Revenue Code of 1986) initially made after 1
December 31, 2024. 2
Æ
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