New Markets Tax Credit Extension Act of 2023

Subparagraph (H) of section 45D(f)(1) of the Internal Revenue Code of 1986 is amended by striking for each of calendar years 2020 through 2025 and inserting calendar year 2020 and each calendar year thereafter.

Section 45D(f)(3) of such Code is amended by striking the last sentence.

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

In the case of any calendar year beginning after 2023, 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 2000 for calendar year 2016 in subparagraph (A)(ii) thereof.

Any increase under subparagraph (A) which is not a multiple of $1,000,000 shall be rounded to the nearest multiple of $1,000,000.

Subparagraph (B) of section 38(c)(4) of the Internal Revenue Code of 1986 is amended—

(1) by redesignating clauses (vii) through (xii) as clauses (viii) through (xiii), respectively, and

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

(vii) 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 after December 31, 2022,.

Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2022.

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 December 31, 2022.