[Congressional Record (Bound Edition), Volume 157 (2011), Part 15]
[House]
[Page 20254]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              {time}  1010
               REAUTHORIZE NEW MARKETS TAX CREDIT PROGRAM

  The SPEAKER pro tempore. The Chair recognizes the gentleman from 
Massachusetts (Mr. Neal) for 5 minutes.
  Mr. NEAL. Madam Speaker, I want to talk about a program that is set 
to expire at the end of the year if Congress does not act, and it's the 
New Markets Tax Credit program. I have fought for this program since 
its enactment in 2000 because it's a cost-effective way to create jobs 
and drive investment in communities with high rates of poverty and 
unemployment. I've seen the amazing results of this initiative first 
hand back home in Massachusetts, and today I want to highlight one of 
those Massachusetts projects, the Colonial Theater in Pittsfield, 
Massachusetts.
  Let me tell you a little about the New Markets Tax Credit. The 
program was designed to stimulate investment and economic growth in 
low-income communities that are traditionally overlooked by 
conventional capital markets. The New Markets Tax Credit program 
attracts capital to low-income communities by providing private 
investors with a 39 percent Federal tax credit for investments made in 
businesses or economic development projects located in certain areas 
where the individual poverty rate is at least 20 percent or where 
median family income is low.
  According to the Government Accountability Office, 88 percent of the 
New Markets Tax Credit investors said they would not have made the 
investment in a low-income community without New Markets Tax Credits.
  Every project or business financed by New Markets Tax Credits is 
located in a low-income community and/or benefits low-income 
individuals. The vast majority, over 90 percent of investment dollars 
generated through New Markets, has gone to communities with levels of 
economic distress that far exceed the minimum requirements of the law; 
and 60 percent has gone to communities with very high unemployment 
rates that are at least 1.5 times the national average.
  Through 2009, New Markets cost the Federal Government, in terms of 
lost revenue, less than $4 billion. That $4 billion should be treated 
as a government investment because it has resulted in $50 billion in 
capital projects in those low-income communities and created or 
retained an estimated 500,000 jobs. According to the Treasury 
Department, every $1 of foregone tax revenue under New Markets 
leverages $12 of private investment in distressed communities. That's 
results, in my opinion.
  Unfortunately, New Markets is a temporary program and unless Congress 
acts this month, it will expire on December 31. I am, and have been, 
the lead Democratic sponsor of legislation to extend this program for 5 
years; and I have been leading the charge for years to make this a 
permanent initiative. I once again call on our colleagues to extend New 
Markets.
  Let's talk about the success of New Markets in Massachusetts. Over 
170 businesses in Massachusetts have received New Markets financing: 
Hot Mama's Foods in Springfield; the River Valley Market in 
Northampton; the Holyoke Health Center; and now the High Performance 
Computing Center in Holyoke as well.
  But I want to focus today on the Colonial Theater in Pittsfield, 
Massachusetts. Pittsfield is a city in western Massachusetts with a 
population of about 42,000 people. It's the largest community in that 
region of the State. It has struggled with unemployment and urban 
blight. The Colonial Theater is a rare architectural gem and one of the 
greatest acoustical houses in the world, located in the heart of 
Pittsfield. It was built at the turn of the century, and it was closed 
for more than 50 years. Periodic attempts to redevelop the theater 
failed for lack of money and sustained public support.
  However, thanks to New Markets Tax Credit, financing of $16.7 million 
of a total project cost of $21 million, this 70,000 square foot theater 
and adjacent building were magnificently restored. With 823 seats, the 
theater reopened in 2006 and now features an impressive lineup of plays 
and musical shows. James Taylor is currently performing at the Colonial 
Theater as part of the cast of ``A Christmas Carol.'' Since its 
renovation, the theater has hosted Arlo Guthrie, the Four Tops, and Bob 
Weir of the Grateful Dead will perform this spring. Recent musicals and 
plays at the Colonial Theater include ``The Who's Tommy,'' ``The 
Producers,'' ``The Wizard of Oz,'' and ``Rent.''
  After the first 2 years of operation, the independent research firm 
Center for Creative Community Development estimated that the Colonial 
Theater sustains a direct economic impact of $4 million annually and 
100 full-time jobs in the Berkshire area.
  The Colonial Theater is a symbol of the re-emergence of Pittsfield as 
an economic and cultural center of the Berkshires. Anchoring the city's 
comprehensive strategy for downtown revitalization, the restored and 
vibrant Colonial Theater--along with six-screen Beacon Cinema Complex, 
also financed with New Markets Tax Credits--has created jobs, attracted 
new businesses, spurred residential development, and added vitality to 
this city. Widespread street-level vacancies in downtown Pittsfield has 
been virtually eliminated and 45 new businesses and restaurants have 
opened. The restoration has helped attract an estimated 400,000 new 
visitors to the downtown Pittsfield area each year.
  Let's rejuvenate the New Markets Tax Credit program.

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