State Rep. Jay Hoffman, D-Swansea, led the effort to extend and expand the New Markets Development Program, a tax credit initiative that attracts private capital investment in small businesses located in low-income areas.
Hoffman’s push for the program was included as part of Senate Bill 1963, which was approved by the governor on Wednesday, June 7, 2023.
“The New Markets Development Program is an important tool that incentivizes private investment in communities that need support,” Hoffman said. “It helps businesses grow, create jobs and take root in the communities they serve. State funding for this program continues to be beneficial both short and long-term, and I’m glad to see continued support for it.”
Under the measure signed, the annual cap on credits for the New Markets Development Program will rise from $20 million to $25 million. Additionally, the program’s sunset will be extended seven years to 2031.
The New Markets Development Program is operated by the Department of Commerce and Economic Opportunity (DCEO). It mirrors a federal program of the same name that incentivizes private capital investment into small businesses in low-income areas of the state through tax credits. Money is allocated to qualified Community Development Entities (CDEs) and then given to investors that make quality equity investments that benefit low-income community businesses.
“It’s critical that we continue to support economic development programs that attract investment, create jobs and provide opportunity for all residents,” Hoffman said. “This is the kind of program that can help people here in the Metro East, and I look forward to the positive impact it will have.”
For more information, contact RepJayHoffman@gmail.com.