II 

117TH CONGRESS 

1ST SESSION S. 456 

To amend the Internal Revenue Code of 1986 to permanently extend the 

new markets tax credit, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 25, 2021 

Mr. CARDIN (for himself, Mr. BLUNT, Mr. SCHUMER, Mr. PORTMAN, Ms. 

CANTWELL, and Mr. SCOTT of South Carolina) 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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘New Markets Tax 

5 Credit Extension Act of 2021’’. 

6 SEC. 2. PERMANENT EXTENSION OF NEW MARKETS TAX 

7 CREDIT. 

8 (a) EXTENSION.— 

9 (1) IN GENERAL.—Subparagraph (H) of section 

10 45D(f)(1) of the Internal Revenue Code of 1986 is 


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•S 456 IS

1 amended by striking ‘‘for each of calendar years 

2 2020 through 2025’’ and inserting ‘‘calendar year 

3 2020 and each calendar year thereafter’’. 

4 (2) CONFORMING AMENDMENT.—Section 

5 45D(f)(3) of such Code is amended by striking the 

6 last sentence. 

7 (b) INFLATION ADJUSTMENT.—Subsection (f) of sec8 tion 45D of the Internal Revenue Code of 1986 is amend9 ed by adding at the end the following new paragraph: 

10 ‘‘(4) INFLATION ADJUSTMENT.— 

11 ‘‘(A) IN GENERAL.—In the case of any cal12 endar year beginning after 2021, the dollar 

13 amount in paragraph (1)(H) shall be increased 

14 by an amount equal to— 

15 ‘‘(i) such dollar amount, multiplied by 

16 ‘‘(ii) the cost-of-living adjustment de17 termined under section 1(f)(3) for the cal18 endar year, determined by substituting 

19 ‘calendar year 2000’ for ‘calendar year 

20 2016’ in subparagraph (A)(ii) thereof. 

21 ‘‘(B) ROUNDING RULE.—Any increase 

22 under subparagraph (A) which is not a multiple 

23 of $1,000,000 shall be rounded to the nearest 

24 multiple of $1,000,000.’’. 


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•S 456 IS

1 (c) ALTERNATIVE MINIMUM TAX RELIEF.—Subpara2 graph (B) of section 38(c)(4) of the Internal Revenue 

3 Code of 1986 is amended— 

4 (1) by redesignating clauses (vii) through (xii) 

5 as clauses (viii) through (xiii), respectively, and 

6 (2) by inserting after clause (vi) the following 

7 new clause: 

8 ‘‘(vii) the credit determined under sec9 tion 45D, but only with respect to credits 

10 determined with respect to qualified equity 

11 investments (as defined in section 45D(b)) 

12 initially made after December 31, 2020,’’. 

13 (d) EFFECTIVE DATES.— 

14 (1) IN GENERAL.—Except as provided in para15 graph (2), the amendments made by this section 

16 shall apply to taxable years beginning after Decem17 ber 31, 2020. 

18 (2) ALTERNATIVE MINIMUM TAX RELIEF.—The 

19 amendments made by subsection (c) shall apply to 

20 credits determined with respect to qualified equity 

21 investments (as defined in section 45D(b) of the In22 ternal Revenue Code of 1986) initially made after 

23 December 31, 2020. 

Æ 


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