[Congressional Record Volume 153, Number 69 (Monday, April 30, 2007)]
[Extensions of Remarks]
[Page E890]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              INTRODUCTION OF NEW MARKETS TAX CREDIT BILL

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                             HON. RON LEWIS

                              of kentucky

                    in the house of representatives

                         Monday, April 30, 2007

  Mr. LEWIS of Kentucky. Madam Speaker, I am pleased to join my 
colleague Congressman Neal in introducing legislation to extend New 
Markets Tax Credit program for an additional five years through 2013.
  Originally authorized in 2000 as part of the bi-partisan Community 
Renewal Tax Relief Act, the New Markets Tax Credit has been successful 
in meeting its principal goal--namely, mobilizing capital to 
economically distressed urban and rural communities.
  Reports from the U.S. Department of the Treasury, reveals that 
interest in the NMTC from the investor market continues to increase at 
a rapid pace. More than $7.7 billion in new private capital has already 
been raised from 560 distinct investors. A recent report released by 
GAO indicates that 88% of investors in New Markets Tax Credit projects 
would not have made the same investment without the Credit.
  In addition to stimulating private investment, the credit is creating 
jobs and financing business development in low-income communities 
across the United States. In my home state of Kentucky, the credit has 
been very active. Seven Kentucky-based community development entities 
(CDEs) have received credit allocations totaling $153.5 million since 
2003. One of these CDEs, Kentucky Highlands Investment Corporation, is 
using its $22 million allocation to invest in health-related businesses 
and health care facilities in rural Kentucky. Community Ventures 
Corporation, also secured $24 million in credits to invest in new and 
expanding businesses throughout the Commonwealth. These projects have 
the potential to create new jobs. To date, Community Ventures 
Corporation has used its credits to raise $24 million in investment 
that has been deployed in businesses throughout the state and it has a 
pipeline of qualified businesses seeking more that $121 million in NMTC 
financing that will have to wait until they can secure additional 
credits.
  I believe the NMTC is a successful program because it brings diverse 
groups together--public and private sectors, investment banks and 
community development corporations--to attract private capital and jobs 
into some of the nation's most impoverished areas.
  The NMTC has been successful because of the emphasis it places on 
community involvement. Private sector investment flows through entities 
like Kentucky Highlands Investment Corporation and Community Ventures 
Corporation that are extremely knowledgeable about the communities they 
serve and are experienced in providing the types of patient, flexible 
capital which conventional lenders and investors are unable to provide 
directly in that market.
  The NMTC continues to be a catalyst for small business development. 
It has fostered start-ups, technology firms, manufacturers, 
neighborhood retail stores, and shopping centers in low-income 
communities. These investments in turn have created many jobs.
  In addition, the NMTC has been used to finance vital community 
facilities that are often lacking in poor communities--charter schools, 
community health centers, biotechnology campuses, employment training 
centers, day care facilities, as well as mixed-use commercial and 
housing developments. These facilities are essential to help qualified 
communities grow and thrive.
  I am a strong believer in the potential of the New Markets Tax Credit 
to bring capital to communities that have traditionally been left 
behind. I was pleased to be one of the leaders of the campaign to 
extend the Credit in 109th Congress and am proud of our accomplishments 
during that period of time. I continue to believe that Congress should 
extend the New Markets Tax Credit for several years, or provide a 
permanent authorization. Investors, CDE's and businesses need greater 
certainty in planning and implementing revitalization strategies in 
economically distressed urban and rural communities.
  For this reason, I believe this legislation takes the correct course 
by authorizing this program for 5 years. I urge my colleagues to join 
us in co-sponsoring the New Markets Tax Credit Extension Act of 2007.

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