[Congressional Record Volume 153, Number 176 (Wednesday, November 14, 2007)]
[Extensions of Remarks]
[Page E2411]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 PROVIDING FOR CONSIDERATION OF H.R. 3996, TEMPORARY TAX RELIEF ACT OF 
                                  2007

                                 ______
                                 

                               speech of

                          HON. MELVIN L. WATT

                           of north carolina

                    in the house of representatives

                        Friday, November 9, 2007

  Mr. WATT. Mr. Speaker, I rise in strong support of H.R. 3996, which 
will address one of the most unfair provisions in the tax code that 
imposes an alternative minimum tax on so many of my constituents to 
whom it was never intended to apply. To some of my constituents, 
including the retired couple that lives across the street from me, this 
is among the most critical issues they face.
  There is one specific tax provision being extended in this bill that 
I want to address specifically, the extension of the New Markets Tax 
Credit, NMTC, program. This tax program is critical to the 
revitalization of struggling communities and census tracts in our 
country that are in critical need of help.
  There is one critical problem with the NMTC program that needs to be 
addressed. The Financial Services Committee's Oversight and 
Investigations Subcommittee, which I chair, held a hearing on October 
30 entitled ``Preserving and Expanding Minority Banks,'' to review 
unique challenges facing minority- and women-owned financial 
institutions. A real concern revealed at this hearing was that 
minority-owned financial institutions have not been receiving 
allocations of credits under the NMTC program. Over the life of the 
program, only six minority banks have received allocations under the 
NMTC program and in the last round of allocations, of 61 recipients, 
only one minority bank was awarded new markets tax credits. This 
represented just $120 million of a total of $3.9 billion in tax credits 
awarded.
  I believe that facilitating greater access to the NMTC program for 
minority and women-owned financial institutions will improve the 
program and help ensure the revitalization of low-income urban and 
rural areas. I appreciate the agreement of Chairman Rangel and 
Subcommittee Chairman Neal to work with me, and perhaps to have a joint 
hearing with our Financial Services Subcommittee, to explore effective 
ways to increase participation in the NMTC program for minority- and 
women-owned financial institutions.

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