New Markets Tax Credit Extension Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 1680 To amend the Internal Revenue Code of 1986 to permanently extend the new markets tax credit, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 12, 2019 Ms. SEWELL of Alabama (for herself, Mr. REED, Mr. PASCRELL, Ms. DELBENE, Mr. KILDEE, Mr. BLUMENAUER, Ms. MOORE, Mr. HIGGINS of New York, Mr. LARSON of Connecticut, Mr. DANNY K. DAVIS of Illi- nois, Mr. KIND, Ms. SA´NCHEZ, Mrs. WALORSKI, Mr. KELLY of Pennsyl- vania, Mr. SMITH of Missouri, Mr. LAHOOD, and Mr. WENSTRUP) intro- duced the following bill; which was referred to the Committee on Ways and Means 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 2019’’. 5 SEC. 2. PERMANENT EXTENSION OF NEW MARKETS TAX 6 CREDIT. 7 (a) EXTENSION.— 8 VerDate Sep 11 2014 21:33 Mar 25, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1680.IH H1680 kjohnson on DSK79L0C42 with BILLS 2 •HR 1680 IH (1) IN GENERAL.—Subparagraph (G) of section 1 45D(f)(1) of the Internal Revenue Code of 1986 is 2 amended by striking ‘‘for each of calendar years 3 2010 through 2019’’ and inserting ‘‘for calendar 4 year 2010 and each calendar year thereafter’’. 5 (2) CONFORMING AMENDMENT.—Section 6 45D(f)(3) of such Code is amended by striking the 7 last sentence. 8 (b) INFLATION ADJUSTMENT.—Subsection (f) of sec- 9 tion 45D of the Internal Revenue Code of 1986 is amend- 10 ed by adding at the end the following new paragraph: 11 ‘‘(4) INFLATION ADJUSTMENT.— 12 ‘‘(A) IN GENERAL.—In the case of any cal- 13 endar year beginning after 2018, the dollar 14 amount in paragraph (1)(G) shall be increased 15 by an amount equal to— 16 ‘‘(i) such dollar amount, multiplied by 17 ‘‘(ii) the cost-of-living adjustment de- 18 termined under section 1(f)(3) for the cal- 19 endar year, determined by substituting 20 ‘calendar year 2000’ for ‘calendar year 21 2016’ in subparagraph (A)(ii) thereof. 22 ‘‘(B) ROUNDING RULE.—Any increase 23 under subparagraph (A) which is not a multiple 24 VerDate Sep 11 2014 21:33 Mar 25, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1680.IH H1680 kjohnson on DSK79L0C42 with BILLS 3 •HR 1680 IH of $1,000,000 shall be rounded to the nearest 1 multiple of $1,000,000.’’. 2 (c) ALTERNATIVE MINIMUM TAX RELIEF.—Subpara- 3 graph (B) of section 38(c)(4) of the Internal Revenue 4 Code of 1986 is amended— 5 (1) by redesignating clauses (v) through (xii) as 6 clauses (vi) through (xiii), respectively, and 7 (2) by inserting after clause (iv) the following 8 new clause: 9 ‘‘(v) the credit determined under sec- 10 tion 45D, but only with respect to credits 11 determined with respect to qualified equity 12 investments (as defined in section 45D(b)) 13 initially made after December 31, 2018,’’. 14 (d) EFFECTIVE DATES.— 15 (1) IN GENERAL.—Except as provided in para- 16 graph (2), the amendments made by this section 17 shall apply to taxable years beginning after Decem- 18 ber 31, 2018. 19 (2) ALTERNATIVE MINIMUM TAX RELIEF.—The 20 amendments made by subsection (c) shall apply to 21 credits determined with respect to qualified equity 22 investments (as defined in section 45D(b) of the In- 23 VerDate Sep 11 2014 21:33 Mar 25, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1680.IH H1680 kjohnson on DSK79L0C42 with BILLS 4 •HR 1680 IH ternal Revenue Code of 1986) initially made after 1 December 31, 2018. 2 Æ VerDate Sep 11 2014 21:33 Mar 25, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H1680.IH H1680 kjohnson on DSK79L0C42 with BILLS