I 118TH CONGRESS 1ST SESSION H. R. 2539 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 APRIL 6, 2023 Ms. TENNEY (for herself, Mr. KELLY of Pennsylvania, Ms. SEWELL, Mr. DAVIS of Illinois, Mrs. MILLER of West Virginia, Mr. FERGUSON, Mr. FITZPATRICK, Mr. SCHWEIKERT, Mr. SMUCKER, Mr. WENSTRUP, Mr. LAHOOD, Mr. YAKYM, Mr. STEUBE, Mr. CAREY, Mr. BUCHANAN, Ms. VAN DUYNE, Mr. BLUMENAUER, Ms. SA´NCHEZ, Mr. HIGGINS of New York, Ms. DELBENE, Ms. CHU, Ms. MOORE of Wisconsin, Mr. KILDEE, Mr. BEYER, Mr. EVANS, and Mr. PANETTA) introduced 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 2023’’. 5 VerDate Sep 11 2014 21:06 Apr 14, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2539.IH H2539 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2539 IH SEC. 2. PERMANENT EXTENSION OF NEW MARKETS TAX 1 CREDIT. 2 (a) EXTENSION.— 3 (1) IN GENERAL.—Subparagraph (H) of section 4 45D(f)(1) of the Internal Revenue Code of 1986 is 5 amended by striking ‘‘for each of calendar years 6 2020 through 2025’’ and inserting ‘‘calendar year 7 2020 and each calendar year thereafter’’. 8 (2) CONFORMING AMENDMENT.—Section 9 45D(f)(3) of such Code is amended by striking the 10 last sentence. 11 (b) INFLATION ADJUSTMENT.—Subsection (f) of sec- 12 tion 45D of the Internal Revenue Code of 1986 is amend- 13 ed by adding at the end the following new paragraph: 14 ‘‘(4) INFLATION ADJUSTMENT.— 15 ‘‘(A) IN GENERAL.—In the case of any cal- 16 endar year beginning after 2023, the dollar 17 amount in paragraph (1)(H) shall be increased 18 by an amount equal to— 19 ‘‘(i) such dollar amount, multiplied by 20 ‘‘(ii) the cost-of-living adjustment de- 21 termined under section 1(f)(3) for the cal- 22 endar year, determined by substituting 23 ‘calendar year 2000’ for ‘calendar year 24 2016’ in subparagraph (A)(ii) thereof. 25 VerDate Sep 11 2014 21:06 Apr 14, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2539.IH H2539 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2539 IH ‘‘(B) ROUNDING RULE.—Any increase 1 under subparagraph (A) which is not a multiple 2 of $1,000,000 shall be rounded to the nearest 3 multiple of $1,000,000.’’. 4 (c) ALTERNATIVE MINIMUM TAX RELIEF.—Subpara- 5 graph (B) of section 38(c)(4) of the Internal Revenue 6 Code of 1986 is amended— 7 (1) by redesignating clauses (vii) through (xii) 8 as clauses (viii) through (xiii), respectively, and 9 (2) by inserting after clause (vi) the following 10 new clause: 11 ‘‘(vii) the credit determined under sec- 12 tion 45D, but only with respect to credits 13 determined with respect to qualified equity 14 investments (as defined in section 45D(b)) 15 initially made after December 31, 2022,’’. 16 (d) EFFECTIVE DATES.— 17 (1) IN GENERAL.—Except as provided in para- 18 graph (2), the amendments made by this section 19 shall apply to taxable years beginning after Decem- 20 ber 31, 2022. 21 (2) ALTERNATIVE MINIMUM TAX RELIEF.—The 22 amendments made by subsection (c) shall apply to 23 credits determined with respect to qualified equity 24 investments (as defined in section 45D(b) of the In- 25 VerDate Sep 11 2014 21:06 Apr 14, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2539.IH H2539 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 2539 IH ternal Revenue Code of 1986) initially made after 1 December 31, 2022. 2 Æ VerDate Sep 11 2014 21:06 Apr 14, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H2539.IH H2539 kjohnson on DSK79L0C42PROD with BILLS