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S. 234: New Markets Tax Credit Extension Act of 2023

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The text of the bill below is as of Feb 2, 2023 (Introduced).

II

118th CONGRESS

1st Session

S. 234

IN THE SENATE OF THE UNITED STATES

February 2, 2023

(for himself, Mr. Daines, Ms. Cantwell, Mr. Scott of South Carolina, Mr. Schumer, Mr. Cassidy, Mr. Menendez, and Mrs. Blackburn) 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 2023.

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 2023, 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, 2022,

.

(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, 2022.

(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, 2022.