Grady Vanderhoofven makes case for permanent extension of New Markets Tax Credit program
He writes that the program is one of the most efficient economic development tools ever enacted for low-income communities.
We have published several articles recently that featured Grady Vanderhoofven, President and Chief Executive Officer of Three Roots Capital, discussing one of his favorite topics: the federal New Markets Tax Credit (NMTC) program.
One was a panel on which he served during an early February 2024 Knoxville Chamber event on the program (see teknovation.biz article here), the other was this April 2024 article after Three Roots had competed for the fifth time and was finally successful, being awarded $45 million in NMTCs. Those tax credits were quickly awarded to two projects – Fitzgerald Trailers in Byrdstown, TN, and Tompkinsville, KY, and Quality Metal Stamping LLC in Henderson and Humboldt, TN.
In a recent blog post on LinkedIn, Vanderhoofven notes the importance of the program to rural communities and the fact that it was extended for five years in 2020. “During this Congress, (members of) the U.S. Senate and House introduced the New Markets Tax Credit Extension Act, H.R.2539 and S.234, with bipartisan support to make the NMTC extension permanent. Establishing permanence will provide certainty in delivering resources to low-income and marginalized communities, creating jobs, increasing economic opportunity, and improving lives at a time when underserved communities face significant challenges.
“Several members of the Tennessee and Kentucky congressional delegations signed on to support legislation to continue the tax credit in years past. We are calling on all Tennessee members of Congress to continue to ensure this resource is available—permanently—and integrate the NMTCs into America’s plan to help underserved and marginalized communities in the region and across the country. “
He concluded by noting that the Three Roots investments provided much-needed capital to its partner companies, spurring growth within their respective communities and the local economy for decades to come—let’s ensure the federal program that made it possible lasts just as long.
Also this week, Chris Miller, Chief Financial Officer at Three Roots and a member of the Board of Directors of the New Markets Tax Credit Coalition (NMTC), was in Washington, DC this week to promote the permanent extension. He’s pictured in this photo with Phil Glynn, Chairman of the NMTC Coalition outside the Senate Finance Committee hearing room after meeting with Senate staff to discuss making NMTC a permanent tool for economic and community development in low-income regions.
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