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Briefings Tomorrow: Part 1 on the
New Markets Tax Credit Program
Tuesday, November 7, 2:00 PM - 3:00 PM
2456 Rayburn House Office Building
Please join the Northeast-Midwest Institute for a two-part Congressional briefing on the implications of tax reform for the region's economy: first, on the New Markets Tax Credit Program; and second, on the Historic Tax Credit Program.
The New Markets Tax Credit (NMTC) has been a bipartisan effort to stimulate investment and economic growth in low-income communities, providing a federal tax credit of 39 percent, taken over seven years, for investments made in low income communities. The program has helped
deliver billions of dollars annually to poor rural and urban neighborhoods with high unemployment and poverty and has led to substantial private investment in the Northeast-Midwest Region. The Tax Cuts and Jobs Act would terminate the NMTC on December 31st, 2017.
Speakers include:
- Brett Theodos, Senior Research Associate,
The Urban Institute
- Commissioner Chris Shaw, City of Dayton, OH
- Bob Rapoza, New Market Tax Credit Coalition
Moderating the panel will be Charlie Bartsch, NEMWI Senior Fellow. Presentations will be followed by a Q&A session with the panel.
For more information, please contact Charlie Bartsch, Senior Fellow, or
Matthew McKenna
, Director of the Great Lakes Washington Program at the Northeast-Midwest Institute.
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Briefing Part 2 on the
Historic Tax Credit Program
Tuesday, November 7, 3:00 PM - 4:00 PM
2456 Rayburn House Office Building
Please join the Northeast-Midwest Institute for a Congressional briefing on the impact that the Historic Tax Credit (HTC) Program has on the region's economy and the implications of tax reform for the HTC.
The Historic Tax Credit, first enacted in 1978 with leadership from the Northeast-Midwest Congressional Coalition, has long had bipartisan support in Congress. The HTC's mission of restoring and reusing historic buildings has supported the revival of our region's most distressed communities. It has stimulated the creation or retention of over 2.4 million jobs and leveraged nearly $132 billion in private investment since its inception, and has been a critical economic development tool for communities of all size in the Northeast-Midwest region. The Tax Cuts and Jobs Act would terminate the HTC for projects not already underway, and cease its applicability to all qualified expenditures around July 1, 2018.
Speakers include:
- Patrick Robertson, Managing Director, FTI Consulting
- John Leith-Tetrault, Chair, Historic Tax Credit Coalition
Moderating the panel will be Charlie Bartsch, NEMWI Senior Fellow. Presentations will be followed by a Q&A session with the panel.
For more information, please contact Charlie Bartsch, Senior Fellow, or
Matthew McKenna
, Director of the Great Lakes Washington Program at the Northeast-Midwest Institute.
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Regional Issues Emerging from the
"Tax Cuts and Jobs Act"
The House Ways and Means Committee released its long-awaited tax reform proposal on November 2. Several provisions, noted below, could have an impact on efforts that Northeast-Midwest states and communities pursue as part of larger community and economic development strategies.
- State and local income and sales tax deductions eliminated - making it potentially more difficult for NEMW states (which don't have the option of energy severance and similar types of revenues) to raise revenues to meet infrastructure, education, and other basic needs.
- Property tax deductions capped at $10,000 - potentially undermining home sales markets in high cost-of-living communities like those in New York, New Jersey, Maryland, Connecticut, and other states.
- All private activity bond interest made taxable (after 2017) - diminishing the value of a public-private financing tool which has been extensively used in the region to support manufacturing, infrastructure, and other economic development investment.
- Historic rehabilitation tax credits repealed (after June 2018) - eliminating a tool which has been used extensively in the revitalization of older cities and towns, often for small economic development projects.
- New Markets Tax Credits repealed - eliminating new allocations of a tool which has channeled billions of private investment dollars to low-income, economically distressed areas, usually for job generating real estate and business development projects.
- Mortgage interest deduction for new/refinanced home purchases limited to interest paid on $500,000 of mortgage debt - penalizing homeowners in high-cost communities.
For more information, please contact Charlie Bartsch, Senior Fellow at the Northeast-Midwest Institute.
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Agencies Release
Annual Report
on Asian Carp
Last week the US Fish and Wildlife Service, in cooperation with the Secretary of the Army and other federal and state bodies, released an annual report on efforts to control the spread of Asian Carp in the Upper Mississippi and Ohio River Basins.
The report, prepared pursuant to the Water Resources Reform and Development Act of 2014, details the intense monitoring and control efforts taken in 2016 to prevent the further spread of the invasive species. In addition to providing a picture of overall efforts, the report goes into detail about the efforts in the Ohio River Basin, the Upper Mississippi River Basin, and the Illinois Waterway and Chicago Area Waterway System.
While the report discusses some techniques that show great promise, Asian carp have continued to spread in recent years. According to the report:
[R]ange expansion was documented from a single adult Silver Carp collected at river mile (RM) 280 of the Ohio River, approximately 64 miles upriver from a prior collection near Wheelersburg, Ohio. There was also a range expansion of Bighead Carp and Grass Carp into the Minnesota River, 103 miles from previous capture locations in the Upper Mississippi River. Range expansion of Black Carp was not detected in 2016.
The full report is available
here.
For more information, please contact
Joe Vukovich, Senior Policy Analyst for the Mississippi River Basin Program, or
Matt McKenna, Director of the Great Lakes Washington Program at the Northeast-Midwest Institute.
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Briefing Addresses Economic Growth and Opportunity in Cities
Development financing in America's cities and towns was the subject of a Capitol Hill briefing co-hosted by Rep. Dan Kildee and Rep. Brian Higgins on Wednesday, November 1. A panel of real estate, job growth, and community development experts came together to discuss ways Congress can create economic opportunity in older, industrial communities. Congressional staff and interested members of the public were in attendance.
The panelists all stressed the importance of public and private investment for aging and distressed communities, as well as the need for strategies to encourage sustainable economic growth. The discussion focused largely on unique ways to foster economic development, including increased public infrastructure investment, the Historic and New Markets Tax Credits, and an emphasis on quality school systems.
The forum was part of an initiative called "The Future of America's Cities and Towns", launched by Rep. Kildee. The initiative aims to change the way Congress and policy-makers think about and invest in America's cities and towns. It is meant to articulate local, state, and federal policy, and how it affects older and industrial communities.
For more information, please contact Charlie Bartsch, Senior Fellow, or
Matthew McKenna
, Director of the Great Lakes Washington Program at the Northeast-Midwest Institute.
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This Week on Capitol Hill
The House Ways and Means Committee is expected to markup the Tax Cuts and Jobs Act starting today and continue through the week as needed.
The Senate is expected to take up more executive and judicial nominations.
A list of key Congressional committee activity that impacts the region can be viewed below:
Tuesday, November 7
- The Senate Commerce, Science, and Transportation Subcommittee on Communications, Innovation, Technology, and the Internet will hold a hearing entitled "Advancing the Internet of Things in Rural America" at 10:00 AM in 253 Russell Senate Office Building.
- The House Natural Resources Committee will hold a hearing to discuss legislation to overhaul federal land energy policy at 2:00 PM in 1324 Longworth House Office Building.
- The House Natural Resources Committee will hold a markup session for nine bills at 5:00 PM in 1324 Longworth House Office Building.
- Of special note is H.R.4239, the Strengthening the Economy with Critical Untapped Resources to Expand American Energy Act, introduced by Rep. Scalise (LA).
Wednesday, November 8
- The Senate Environment and Public Works Committee will hold a hearing on the nominations of Kathleen White to be a Member of the Council on Environmental Quality and Andrew Wheeler to be Deputy Administrator of the EPA at 10:00 AM in 406 Dirksen Senate Office Building.
Thursday, November 9
- The House Energy and Commerce Subcommittee on the Environment will hold a discussion on the draft Farm Regulatory Certainty Act at 10:15 AM in 2322 Rayburn House Office Building.
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NEMWI: Strengthening the Region that Sustains the Nation
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