I 112th CONGRESS 1st Session H. R. 2655 IN THE HOUSE OF REPRESENTATIVES July 26, 2011 Mr. Gerlach (for himself, Mr. Neal, Mr. Tiberi, Mr. Rangel, Mr. McDermott, Mr. Lewis of Georgia, and Mr. Blumenauer) 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 extend the new markets tax credit through 2016, and for other purposes.

1.

Short title

This Act may be cited as the New Markets Tax Credit Extension Act of 2011.

2.

Extension of new markets tax credit

(a)

Extension

(1)

In general

Paragraph (1) of section 45D(f) of the Internal Revenue Code of 1986 is amended— (A)by striking the period at the end of subparagraph (G) and inserting , and, and (B)by adding at the end the following new subparagraph: (H)$5,000,000,000 for 2012, 2013, 2014, 2015, 2016. . (2)

Conforming amendment

Section 45D(f)(3) of such Code is amended by striking 2016 and inserting 2021. (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 2012, the dollar amount in paragraph (1)(H) 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 2011 for calendar year 1992 in subparagraph (B) thereof. (B)

Rounding rule

If a dollar amount in paragraph (1)(G), as increased under subparagraph (A), is not a multiple of $1,000,000, such amount 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 (ix) as clauses (vi) through (x), 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 before January 1, 2017, . (d)

Effective dates

(1)

In general

The amendments made by this section shall take effect on the date of the enactment of this Act. (2)

Subsection (c)

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 the date of the enactment of this Act.