SECTION 1. SHORT TITLE.

    This Act may be cited as the ``New Markets Tax Credit Military 
Installation Act of 2013'' or the ``NMTC Military Installation Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Since 1988, through 5 separate rounds of the Base 
        Realignment and Closure process, more than 300 military 
        installations located in 48 States and 3 United States 
        territories have had their missions eliminated or realigned.
            (2) 120 of these former installations were ``major'' base 
        closures, resulting in the loss of 300 or more military and 
        civilian jobs at each closure. While these communities received 
        Federal support in the 1990s, there are currently no Federal 
        programs to support the physical redevelopment at closed or 
        realigned installations.
            (3) Despite local active efforts to promote redevelopment, 
        nearly 100 of these closed or realigned military installations 
        are located in economically distressed communities now 
        suffering from high unemployment and disproportionately high 
        poverty rates as determined by the Department of the Treasury.
            (4) More than 20 of these former installations are located 
        in even harder hit ``severely distressed'' communities as 
        defined by the Department of the Treasury.
            (5) One example is the City of Vallejo, California, which 
        in 2008 filed for bankruptcy protection due in part to closure 
        of the Mare Island Naval Shipyard and the accompanying loss of 
        almost 10,000 jobs.
            (6) When a military base is closed, the Department of 
        Defense is required to complete any necessary environmental 
        cleanup at the former base and then transition the property to 
        a Local Redevelopment Authority, usually a local government. 
        Together, the Department of Defense Office of Economic 
        Adjustment and the Local Redevelopment Authority create a 
        redevelopment plan for the property. The goal of this process 
        is to lead to a timely, beneficial, revenue generating reuse of 
        these former military bases.
            (7) However, numerous former military installations have 
        taken much longer and cost much more than expected to clean up, 
        thereby significantly delaying reuse and causing many of these 
        communities to become or remain economically distressed.
            (8) In 2000, the New Markets Tax Credit (NMTC) program was 
        created to spur private sector investment in low-income 
        communities suffering from chronic unemployment and high 
        poverty rates by providing investors with a 7-year, 39-percent 
        Federal income tax credit for investments made through 
        investment vehicles known as Community Development Entities. 
        According to the Department of the Treasury, every $1 of 
        foregone tax revenues under the NMTC program leverages about 
        $12 of private investment in distressed communities on a cost 
        basis.
            (9) Recently, the community in Brunswick, Maine, has been 
        successfully redeveloping the former Naval Air Station located 
        there, by using among other tools the NMTC. In particular, the 
        NMTC was used to build a new, $15 million, 80,000 square foot 
        manufacturing facility operated by Swedish medical supply maker 
        Molnlycke Health Care. A second NMTC was used to make $20 
        million in renovations of facilities now operated by aircraft 
        manufacturer Kestrel Aeroworks. This latter project could have 
        been 3 times as large had additional NMTC funds been available. 
        These two projects alone will bring over 200 high-tech, high-
        wage jobs among other significant economic benefits to this 
        economically distressed former military community.
            (10) Communities surrounding these former military 
        installations still face the difficult challenges of economic 
        redevelopment resulting from the loss of the Federal workforce 
        and the supporting infrastructure associated with the former 
        military missions located there. Focusing part of the 
        successful NMTC to help these communities that are still 
        struggling after the military exodus will help facilitate the 
        economic redevelopment that these distressed communities need.

SEC. 3. PERMANENT APPLICATION OF NEW MARKETS TAX CREDIT LIMITATION WITH 
              RESPECT TO COMMUNITIES IMPACTED BY REALIGNMENT OR CLOSURE 
              OF MILITARY INSTALLATIONS.

    (a) In General.--Subsection (f) of section 45D of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(4) Special rule for allocation of limitation for 
        redevelopment of communities impacted by realignment or closure 
        of military installations.--
                    ``(A) In general.--Notwithstanding paragraph (1), 
                for calendar year 2014 (and each calendar year 
                thereafter) the Secretary shall allocate $100,000,000 
                in new markets tax credit limitation among qualified 
                development entities selected by the Secretary to make 
                qualified low-income community investments within the 
                former boundaries of military installations realigned 
                or closed pursuant to a base closure law (as defined in 
                section 101(a)(17) of title 10, United States Code).
                    ``(B) Qualified development entity mission 
                requirement.--A qualified community development entity 
                shall be eligible for an allocation under subparagraph 
                (A) only if a significant mission of such entity is the 
                redevelopment of such a military installation.
                    ``(C) Carryover of unused limitation.--If the new 
                markets tax credit limitation for any calendar year 
                exceeds the aggregate amount allocated under 
                subparagraph (A) for such year, such limitation for the 
                succeeding calendar year shall be increased by the 
                amount of such excess.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to allocations after December 31, 2013.
New Markets Tax Credit Military Installation Act of 2013 or the NMTC Military Installation Act - Amends the Internal Revenue Code, with respect to the new markets tax credit, to direct the Secretary of the Treasury to allocate in 2014 and thereafter funds in the limitation amount for such credit among qualified community development entities to make qualified low-income community investments within the former boundaries of military installations realigned or closed due to a base closure law. 
NMTC Military Installation Act