New Markets Tax Credit

Floor Speech

Mr. NEAL. Mr. Speaker, let me also thank Reverend Cleaver. At his request, I campaigned with him and for him and did a series of Social Security events in his constituency. I spent the better part of 2 days with him, and I got an opportunity to see the regard and respect that he was held in by the citizens of Kansas City.

Mr. Speaker, let me address the issue of extending the New Markets Tax Credit. I have fought for this program since its enactment in 2000 because it's a cost-effective way to create jobs and drive investments in communities with high rates of poverty and unemployment. I've seen the amazing results of this initiative firsthand. Let me highlight just some of those Massachusetts projects.

Let me first tell you a little bit about the New Markets Tax Credit. It was designed to stimulate investment and economic growth in low-income communities that are traditionally overlooked by conventional capital markets. Since its enactment, the credit has generated $45 billion in capital for projects in low-income communities that range from the first supermarket in a generation in southeast Washington, D.C., to the restoration of one of the greatest acoustical houses in the world, the Colonial Theater in Pittsfield, Massachusetts. Furthermore, New Markets' investments between 2003 and 2010 have been responsible for creating over 500,000 jobs in economically distressed communities across the country. These are remarkable results.

Let me share with you another success story from back home that further explains why I'm a big supporter of New Markets: the Holyoke Public Library. Holyoke is a city in western Massachusetts with a population of about 40,000 people. From the late 19th century until the mid-20th century Holyoke was the world's biggest paper manufacturer. In fact, at one point there were 25 paper mills in operation in Holyoke, and that's how Holyoke got its nickname, ``The Paper City.''

However, this industrial city's fortunes ebbed when the paper mills closed, and Holyoke now has one-third of its population living below the poverty line.

The Holyoke Public Library project is currently underway and involves renovating and expanding the 110-year-old library and transforming it into a 21st century education and training center.

For many years, there had been very little funding available to maintain the facility itself. And, therefore, over time, the library has substantially aged and deteriorated. Today, nearly 40 percent of the library's interior is seriously compromised and inaccessible to the public. But thanks in large part to New Market's tax credit financing, the Holyoke Public Library is currently being renovated and modernized, and the new and improved library will provide critical public access to computers and the latest technology.

New Market's tax credits are a good example of how public and private investment can be used to spur community and economic revitalization. New Market's tax credits expired at the end of last year. It's critical that the Congress not leave town until we, once again, extend this program and the opportunities that come with it.

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