On January 28, 2014, Rep. Richard Neal (D-MA) introduced H.R. 3939, the “Invest in the United States Act of 2014? (the “Invest Act”), which is intended to stimulate economic investment and create jobs. The Invest Act would permanently extend the Federal New Markets Tax Credit Program to ensure the community development benefits of the program continue to benefit neighborhoods throughout the country.. Section 201 establishes an annual allocation of Federal New Markets Tax Credit authority of $5 billion readjusted each year for cost-of-living, rounded to the nearest $1,000,000. The Invest Act has been referred to the House Committee on Ways and Means, Transportation and Infrastructure, and Education and the Workforce.
Neal, who sits on the House Ways and Means Committee, said the tax relief proposed in his bill would help businesses hire new employees and buy new equipment. “This legislation will go a long way in creating an environment where our economy can take off by making the strategic investment needed to spur growth,” Neal said in a statement on his website.
The Invest Act includes provisions to reauthorize, expand or make permanent several other tax credits and bond programs. It would make the 15-year depreciation schedule permanent for leasehold improvements, restaurant improvements, new construction and retail improvements. The Invest Act would also establish a federal infrastructure bank and a community college tuition tax, and increase the minimum wage.
Click here to read the full text of H.R. 3939.