New Markets Tax Credit Extension Act of 2021

II 117TH CONGRESS 1ST SESSION S. 456 To amend the Internal Revenue Code of 1986 to permanently extend the new markets tax credit, and for other purposes. IN THE SENATE OF THE UNITED STATES FEBRUARY 25, 2021 Mr. CARDIN (for himself, Mr. BLUNT, Mr. SCHUMER, Mr. PORTMAN, Ms. CANTWELL, and Mr. SCOTT of South Carolina) 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. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘New Markets Tax 4 Credit Extension Act of 2021’’. 5 SEC. 2. PERMANENT EXTENSION OF NEW MARKETS TAX 6 CREDIT. 7 (a) EXTENSION.— 8 (1) IN GENERAL.—Subparagraph (H) of section 9 45D(f)(1) of the Internal Revenue Code of 1986 is 10 VerDate Sep 11 2014 01:07 Mar 19, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S456.IS S456 kjohnson on DSK79L0C42PROD with BILLS 2 •S 456 IS amended by striking ‘‘for each of calendar years 1 2020 through 2025’’ and inserting ‘‘calendar year 2 2020 and each calendar year thereafter’’. 3 (2) CONFORMING AMENDMENT.—Section 4 45D(f)(3) of such Code is amended by striking the 5 last sentence. 6 (b) INFLATION ADJUSTMENT.—Subsection (f) of sec- 7 tion 45D of the Internal Revenue Code of 1986 is amend- 8 ed by adding at the end the following new paragraph: 9 ‘‘(4) INFLATION ADJUSTMENT.— 10 ‘‘(A) IN GENERAL.—In the case of any cal- 11 endar year beginning after 2021, the dollar 12 amount in paragraph (1)(H) shall be increased 13 by an amount equal to— 14 ‘‘(i) such dollar amount, multiplied by 15 ‘‘(ii) the cost-of-living adjustment de- 16 termined under section 1(f)(3) for the cal- 17 endar year, determined by substituting 18 ‘calendar year 2000’ for ‘calendar year 19 2016’ in subparagraph (A)(ii) thereof. 20 ‘‘(B) ROUNDING RULE.—Any increase 21 under subparagraph (A) which is not a multiple 22 of $1,000,000 shall be rounded to the nearest 23 multiple of $1,000,000.’’. 24 VerDate Sep 11 2014 01:07 Mar 19, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S456.IS S456 kjohnson on DSK79L0C42PROD with BILLS 3 •S 456 IS (c) ALTERNATIVE MINIMUM TAX RELIEF.—Subpara- 1 graph (B) of section 38(c)(4) of the Internal Revenue 2 Code of 1986 is amended— 3 (1) by redesignating clauses (vii) through (xii) 4 as clauses (viii) through (xiii), respectively, and 5 (2) by inserting after clause (vi) the following 6 new clause: 7 ‘‘(vii) the credit determined under sec- 8 tion 45D, but only with respect to credits 9 determined with respect to qualified equity 10 investments (as defined in section 45D(b)) 11 initially made after December 31, 2020,’’. 12 (d) EFFECTIVE DATES.— 13 (1) IN GENERAL.—Except as provided in para- 14 graph (2), the amendments made by this section 15 shall apply to taxable years beginning after Decem- 16 ber 31, 2020. 17 (2) ALTERNATIVE MINIMUM TAX RELIEF.—The 18 amendments made by subsection (c) shall apply to 19 credits determined with respect to qualified equity 20 investments (as defined in section 45D(b) of the In- 21 ternal Revenue Code of 1986) initially made after 22 December 31, 2020. 23 Æ VerDate Sep 11 2014 01:07 Mar 19, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S456.IS S456 kjohnson on DSK79L0C42PROD with BILLS