I 
113TH CONGRESS 
1ST SESSION H. R. 3439 
To amend the Internal Revenue Code of 1986 to provide for the permanent 
application of the new markets tax credit for the redevelopment of 
communities impacted by realignment or closure of military installations. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 30, 2013 
Mr. THOMPSON of California (for himself and Mr. HALL) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
for the permanent application of the new markets tax 
credit for the redevelopment of communities impacted 
by realignment or closure of military installations. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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: 
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(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 mis-
sions 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 rede-
velopment, nearly 100 of these closed or realigned 
military installations are located in economically dis-
tressed communities now suffering from high unem-
ployment 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, Cali-
fornia, which in 2008 filed for bankruptcy protection 
due in part to closure of the Mare Island Naval 
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Shipyard and the accompanying loss of almost 
10,000 jobs. 
(6) When a military base is closed, the Depart-
ment of Defense is required to complete any nec-
essary environmental cleanup at the former base and 
then transition the property to a Local Redevelop-
ment Authority, usually a local government. To-
gether, the Department of Defense Office of Eco-
nomic Adjustment and the Local Redevelopment Au-
thority create a redevelopment plan for the property. 
The goal of this process is to lead to a timely, bene-
ficial, revenue generating reuse of these former mili-
tary bases. 
(7) However, numerous former military installa-
tions have taken much longer and cost much more 
than expected to clean up, thereby significantly de-
laying 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 
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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 sig-
nificant economic benefits to this economically dis-
tressed 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 infrastruc-
ture associated with the former military missions lo-
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