Rippelmeyer Advocates for the Permanency of the New Market Tax Credit in Bloomberg Law

09.20.2024

Stinson LLP Partner Karen Rippelmeyer authored a column for Bloomberg Law, "It's Time for the New Market Tax Credit Program to Be Permanent."

Rippelmeyer provides insight into the federal New Market Tax Credit (NMTC) program, which she says is a crucial economic development tool for incentivizing private investment in economically distressed communities. She highlights the NMTC program's proven success of creating and retaining jobs and financing businesses, while also addressing the challenges posed, as there is no specific allocation for the NMTC program authorized past 2025.

Having a permanent placement in the tax code will attract more investors, leading to more competition and lower costs for underserved communities, Rippelmeyer says. Additionally, she says it would create a long-range planning pipeline and draw in new community development entities, especially those who have been reluctant to commit without the promise of future funding.

"With over 20 years of successful history, the NMTC program has proven itself worthy of a permanent place in the tax code," she says. "If proponents can convince Congress to take this next step, then more time can be spent developing projects with real community impact."

Rippelmeyer focuses her practice on real estate law and tax credit and impact financing. She works with equity investors, developers, lenders and community economic entities in real estate matters involving federal, state and local tax credits and incentives, including new markets tax credits, historic rehabilitation tax credits and low-income housing tax credits.

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