August 11, 2014
Birmingham, AL – The New Markets Tax Credit Coalition in a press release today responded to two reports that were critical of the new markets tax credit (NMTC). In its report, “New Markets Tax Credit: Better Controls and Data Are Needed to Ensure Effectiveness,” the U.S. Government Accountability Office (GAO) said that NMTC investors receive an unduly large annual return. In its statement, the NMTC Coalition counters that GAO overestimated those figures and that actual NMTC investor returns are aligned with market rates of 6 to 7 percent annually. The group also responded to a report released by Sen. Tom Coburn, R-Okla., “Banking on the Poor,” which suggested that the NMTC has not succeeded in helping struggling communities. The NMTC Coalition asserts in its response that the program has delivered more than $60 billion in capital to businesses in the nation’s poorest communities.