[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1321 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 1321

 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

                           February 25, 2021

   Ms. Sewell (for herself, Mr. Reed, Mr. Larson of Connecticut, Mr. 
Blumenauer, Mr. Pascrell, Mr. Danny K. Davis of Illinois, Ms. Sanchez, 
   Mr. Higgins of New York, Ms. DelBene, Ms. Moore of Wisconsin, Mr. 
 Kildee, Mr. Beyer, Mr. Evans, Mr. Panetta, Mr. Buchanan, Mr. Kelly of 
 Pennsylvania, Mr. Smith of Missouri, Mr. Rice of South Carolina, Mr. 
Schweikert, Mrs. Walorski, Mr. LaHood, Mr. Wenstrup, Mr. Ferguson, and 
 Mr. Smucker) 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 permanently extend the 
            new markets tax credit, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``New Markets Tax Credit Extension Act 
of 2021''.

SEC. 2. PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT.

    (a) Extension.--
            (1) In general.--Subparagraph (H) of section 45D(f)(1) of 
        the Internal Revenue Code of 1986 is amended by striking ``for 
        each of calendar years 2020 through 2025'' and inserting 
        ``calendar year 2020 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 2021, 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 2000' for `calendar year 2016' 
                        in subparagraph (A)(ii) 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 (vii) through (xii) as clauses 
        (viii) through (xiii), respectively, and
            (2) by inserting after clause (vi) the following new 
        clause:
                            ``(vii) 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, 2020,''.
    (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, 2020.
            (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, 2020.
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