icon Blueprint for December

Tax Ping Pong

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3 min read

As we reach our deadline for this issue, the two houses of Congress are playing ping pong with our tax code. If those on the House side of the table win, the New Markets Tax Credit may not survive. If those on the Senate side win, it may survive. And then again, either side can change its mind.

This may seem a bit flip. But, as far as I’m concerned, so has the tax change negotiations. When people need money to run for office, even if many of them are ultra-rich, you can never be sure of what they may do to please a donor. Having raised money for theater productions for 25 years, I know how a check can affect the choices you make. The difference, of course, is no one has to go to the theater, but everyone has to pay taxes. Well, most people, anyway.

So while the plastic ball is still being slapped back and forth, we devote this issue to making the case for saving the New Markets Tax Credit. We begin with an interview with Robert Davenport of the National Development Council who has devoted his substantial, impressive career to underserved communities. Once you (or your Representatives) hear Robert’s explanation of the impact of the program, you may not need any more persuasion. (Talking Heads)

We then visit two new facilities that have created both temporary and permanent new jobs in their towns while making important contributions to a better life in those communities. Staff writer Mark Fogarty presents a case study on the development of the Special Olympics Training Center in Norcross, GA (Training for Life) while staff writer Mark Olshaker takes us through the development of the CrescentCare Health Campus in New Orleans.

Though the perception of the NMTC program may be that it supports urban development projects, Scott Beyer shows us otherwise, reporting on the growth of the use of NMTC in rural communities using the widespread usage throughout Vermont

as an example. (Country Credits) This month’s State Roundup feature, which generally reports on a variety of topics, hones in on NMTC projects all around the country (in many Congressional districts). And as a finale to this issue you will find a state-by-state chart showing the numbers of projects and jobs created by NMTC over a decade. (Numbers)

As a diversion from our focus on New Markets, we also look at a new program implemented by the state government of New York, based on an approach from the Netherlands, to push energy spending in private homes near net-zero. (RetroftNY). Our guru, David A. Smith, explains why your neighbor who may be most concerned with sustaining the full tax credit menu is your governor. (The Guru Is In) And, as we headed to press, we received breaking news from Fannie Mae and Freddie Mac, both of whom are diving back into funding affordable housing.

So grab a paddle and stand at the other end of the table. We’re ready to serve.

Marty Bell
Editor