S 996

112th CONGRESS
1st Session

S. 996

To amend the Internal Revenue Code of 1986 to extend the new markets tax credit through 2016, and for other purposes.

IN THE SENATE OF THE UNITED STATES

May 12, 2011

Mr. ROCKEFELLER (for himself, Ms. SNOWE, Mr. BINGAMAN, Mr. LEAHY, Mr. SCHUMER, Mr. KERRY, and Mr. BROWN of Massachusetts) introduced the following bill; which was read twice and referred to the Committee on Finance


A BILL

To amend the Internal Revenue Code of 1986 to extend the new markets tax credit through 2016, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the `New Markets Tax Credit Extension Act of 2011'.

SEC. 2. EXTENSION OF NEW MARKETS TAX CREDIT.

    (a) Extension-

      (1) IN GENERAL- Paragraph (1) of section 45D(f) of the Internal Revenue Code of 1986 is amended--

        (A) by striking the period at the end of subparagraph (G) and inserting `, and', and

        (B) by adding at the end the following new subparagraph:

        `(H) $5,000,000,000 for 2012, 2013, 2014, 2015, 2016.'.

      (2) CONFORMING AMENDMENT- Section 45D(f)(3) of such Code is amended by striking `2016' and inserting `2021'.

    (b) Inflation Adjustment- Subsection (f) of section 45D of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

      `(4) INFLATION ADJUSTMENT-

        `(A) IN GENERAL- In the case of any calendar year beginning after 2012, the dollar amount in paragraph (1)(H) shall be increased by an amount equal to--

          `(i) such dollar amount, multiplied by

          `(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting `calendar year 2011' for `calendar year 1992' in subparagraph (B) thereof.

        `(B) ROUNDING RULE- If a dollar amount in paragraph (1)(G), as increased under subparagraph (A), is not a multiple of $1,000,000, such amount shall be rounded to the nearest multiple of $1,000,000.'.

    (c) Alternative Minimum Tax Relief- Subparagraph (B) of section 38(c)(4) of the Internal Revenue Code of 1986 is amended--

      (1) by redesignating clauses (v) through (ix) as clauses (vi) through (x), respectively, and

      (2) by inserting after clause (iv) the following new clause:

          `(v) the credit determined under section 45D, but only with respect to credits determined with respect to qualified equity investments (as defined in section 45D(b)) initially made before January 1, 2012,'.

    (d) Effective Dates-

      (1) IN GENERAL- The amendments made by this section shall take effect on the date of the enactment of this Act.

      (2) SUBSECTION (c)- The amendments made by subsection (c) shall apply to credits determined with respect to qualified equity investments (as defined in section 45D(b) of the Internal Revenue Code of 1986) initially made after the date of the enactment of this Act.

END