Sec. 20243. Extension and improvement of new markets tax credit

372 words·~2 min read·/bill/116/hr/8352/ih/section-20243

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Section 45D(f)(1) of the Internal Revenue Code of 1986 is amended by adding , and at the end of subparagraph (F), by striking the period at the end of subparagraph

(G)and inserting , and , and by adding at the end the following new subparagraph: $10,000,000,000 for each of calendar years 2021 through 2030. . Section 45D(f)(2) of such Code is amended by inserting the following after the first sentence: In making allocations under this paragraph, the Secretary shall take into account the entity’s business strategy, community impact, management capacity, and capitalization strategy, and the degree of distress of the communities served by the entity. . Section 45D(f)(2) of such Code is amended by striking under the preceding sentence and inserting under this paragraph . Section 45D of such Code is amended by redesignating subsections

(h)and

(i)as subsections

(i)and (j), respectively, and by inserting after subsection

(g)the following new subsection: In the case of a qualified equity investment in a qualified distressed community development entity, subsection (a)(2) shall be applied— by substituting 6 percent for 5 percent in subparagraph (A), and by substituting 7 percent for 6 percent in subparagraph (B). For purposes of this subsection— The term qualified distressed community development entity means any qualified community development entity if— a substantial portion of the services and investment capital provided by such entity is provided with respect to distressed communities, and such entity is certified by the Secretary for purposes of this section as being a qualified distressed community development entity. The term distressed community means any population census tract (or equivalent county division within the meaning of subsection (e)(3)) which would be a low-income community if— subsection (e)(1)(A) were applied by substituting 30 percent for 20 percent , and subsection (e)(1)(B) were applied by substituting 60 percent for 80 percent each place it appears. . The amendments made by subsection

(a)shall apply to calendar years after 2021. The amendments made by subsection

(b)shall apply to allocations made by the Secretary after the date of the enactment of this Act. The amendments made by subsection

(c)shall apply to qualified equity investments acquired at original issue after the date of the enactment of this Act.