For the past 3 years, Veterans have been trying to get greater allocations of what are called New Market Tax Credits (NMTC), which provide a 39% tax credit to small business. The tax credit is used to provide more favorable terms on loans and investments. Resolutions by both the American Legion (Resolution 363) and the Veterans Task Force for Veteran Entrepreneurs (Vet-Force), have called for Treasury to allocate 20% of the annual allocation of all NMTC ($5 Billion—yes, that’s BILLION) to small business transactions below $1 million.
Now there might be hope for Veteran small businesses in 2012, as Treasury is seeking public comments that could bring the NMTC transaction average well below $1 million and have a very positive impact on Veteran and Service Disabled Veteran Owned Small Businesses (VOSB and SDVOSB).
A Federal Register notice solicits public comments on how to improve the NMTC program for small business. Veteran small businesses can now weigh in with their comments to Treasury by responding to the notice before February 6th.
Veterans should let Treasury know by February 6th that they support Resolution 363 by writing to:
Bob Ibanez, Manager
New Markets Tax Credit Program
U.S. Department of the Treasury
601 13th Street NW
Suite 200 South
Washington, DC 20005
or by facsimile at (202) 622–7754
or send an email to email@example.com
State that you support both Resolutions, and attach a copy of Resolution 363 to your email.