Representative Ed Towns (D-NY) recently introduced legislation (HR 5718) in the U.S. House of Representatives to amend Section 45D of the Internal Revenue Code of 1986 to revise the New Markets Tax Credit (NMTC) Program and the rules related to population census tracts with low-income populations. Specifically, the new rule modifies how a census tract qualifies as a low-income community. The new rule would take into consideration proximity to other low-income communities, whether the tract is within an empowerment zone, the poverty rate of the community, the median family income as compared to the state median family income, and the unemployment rate. The legislation has been referred to the House Committee on Ways and Means and if enacted would be applicable to all taxable years after December 31, 2011.

Click here to read HR 5718.