S. 479

119 S479 IS: New Markets Tax Credit Extension Act of 2025
 U.S. Senate
 2025-02-06
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 II  119th CONGRESS  1st Session  S. 479  IN THE SENATE OF THE UNITED STATES   February 6 (legislative day, February 5), 2025   Mr. Daines  (for himself,  Mr. Warner ,  Mr. Boozman ,  Mr. Welch ,  Mr. Cassidy ,  Mr. Schumer ,  Mrs. Hyde-Smith ,  Mrs. Shaheen ,  Mr. Ricketts ,  Ms. Klobuchar ,  Mr. Moran ,  Ms. Cantwell ,  Mr. Wicker ,  Mr. Hickenlooper ,  Mrs. Blackburn , and  Mr. Booker ) introduced the following bill; which was read twice and referred to the  Committee on Finance    A BILL
To amend the Internal Revenue Code of 1986 to permanently extend the new markets tax credit, and for other purposes.
1.
Short title
This Act may be cited as the   New Markets Tax Credit Extension Act of 2025  .
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 2025, 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, 2024,
 .
(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, 2024.
(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, 2024.