WASHINGTON, D.C. - Ways and Means Select Revenue Measures Subcommittee Chairman Richard E. Neal (D-MA), issued the following opening statement at a joint hearing with the Subcommittee on Domestic Monetary Policy and Technology of the Financial Services Committee on issues involving the New Markets Tax Credit program:
“I call this hearing to order. Please take your seats.
“I first want to welcome to the Ways and Means Committee our colleagues who are joining us for this Joint Hearing between the Select Revenue Measures Subcommittee and the Domestic Policy Subcommittee of the Financial Services Committee. Welcome Chairman Watt, and Mr. Paul.
“Our hearing today is an examination of the New Markets Tax Credit program, of which both Mr. Tiberi and I are supporters. We have seen first-hand the difference this program can make in our districts and home states. And as we will hear today, 88% of the investors in this program say they would not have invested in a low-income community without the credit.
“The risk of investing in a distressed community is often too high for many investors. As a former mayor, I know how difficult it can be to pull together financing from every corner imaginable in order to get new investment in a neighborhood everyone has given up on. And sometimes that new investment is simply getting a grocery store, a restaurant, or a retailer to locate in the heart of a struggling or blighted neighborhood.
“Pope John Paul II said, ‘A community needs a soul if it is to become a true home for human beings.’ I have seen many of these neighborhoods missing their souls. Investments in jobs, businesses, and people can really turn these communities around.
“I believe the New Markets Tax Credit is an efficient way to target investment into the neediest communities around the country. Of course, we also need to ensure that community organizations, many which are smaller or minority-owned, have a fair shot at competing for these tax credits. And today, we will hear from a number of experts on the subject who will share their experiences and recommendations for improvements."
