,i #aacth ,,congress #ast ,session ,h4 ,r4 #cdci ,,in ,,the ,,house ,,of ,,representatives ,october #cj1 #bjac,mr4 ,thompson of ,california 7for himself and ,mr4 ,hall7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide for the permanent application of the new markets tax credit for the redevelopment of communities impacted by realignment or closure of military installations4 #a4 ,short title ,this ,act may be cited as the ,new ,markets ,tax ,credit ,military ,installation ,act of #bjac or the ,,nmtc ,military ,installation ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,since #aihh1 through #e separate rounds of the ,base ,realignment and ,closure process1 more than #cjj military installations located in #dh ,states and #c ,united ,states territories have had their missions eliminated or realigned4 7#b7 #abj of these former installations were major base closures1 resulting in the loss of #cjj or more military and civilian jobs at each closure4 ,while these communities received ,federal support in the #aiijs1 there are currently no ,federal programs to support the physical redevelopment at closed or realigned installations4 7#c7 ,despite local active efforts to promote redevelopment1 nearly #ajj of these closed or realigned military installations are located in economically distressed communities now suffering from high unemployment and disproportionately high poverty rates as determined by the ,department of the ,treasury4 7#d7 ,more than #bj of these former installations are located in even harder hit severely distressed communities as defined by the ,department of the ,treasury4 7#e7 ,one example is the ,city of ,vallejo1 ,california1 which in #bjjh filed for bankruptcy protection due in part to closure of the ,mare ,island ,naval ,shipyard and the accompanying loss of almost #aj1jjj jobs4 7#f7 ,when a military base is closed1 the ,department of ,defense is required to complete any necessary environmental cleanup at the former base and then transition the property to a ,local ,redevelopment ,authority1 usually a local government4 ,together1 the ,department of ,defense ,office of ,economic ,adjustment and the ,local ,redevelopment ,authority create a redevelopment plan for the property4 ,the goal of this process is to lead to a timely1 beneficial1 revenue generating reuse of these former military bases4 7#g7 ,however1 numerous former military installations have taken much longer and cost much more than expected to clean up1 thereby significantly delaying reuse and causing many of these communities to become or remain economically distressed4 7#h7 ,in #bjjj1 the ,new ,markets ,tax ,credit 7,,nmtc7 program was created to spur private sector investment in low-income communities suffering from chronic unemployment and high poverty rates by providing investors with a #g-year1 #ci-percent ,federal income tax credit for investments made through investment vehicles known as ,community ,development ,entities4 ,according to the ,department of the ,treasury1 every #a of foregone tax revenues under the ,,nmtc program leverages about #ab of private investment in distressed communities on a cost basis4 7#i7 ,recently1 the community in ,brunswick1 ,maine1 has been successfully redeveloping the former ,naval ,air ,station located there1 by using among other tools the ,,nmtc4 ,in particular1 the ,,nmtc was used to build a new1 #ae million1 #hj1jjj square foot manufacturing facility operated by ,swedish medical supply maker ,molnlycke ,health ,care4 ,a second ,,nmtc was used to make #bj million in renovations of facilities now operated by aircraft manufacturer ,kestrel ,aeroworks4 ,this latter project could have been #c times as large had additional ,,nmtc funds been available4 ,these two projects alone will bring over #bjj high-tech1 high-wage jobs among other significant economic benefits to this economically distressed former military community4 7#aj7 ,communities surrounding these former military installations still face the difficult challenges of economic redevelopment resulting from the loss of the ,federal workforce and the supporting infrastructure associated with the former military missions located there4 ,focusing part of the successful ,,nmtc to help these communities that are still struggling after the military exodus will help facilitate the economic redevelopment that these distressed communities need4 #c4 ,permanent application of new markets tax credit limitation with respect to communities impacted by realignment or closure of military installations 7a7 ,in general ,subsection 7f7 of section #de;,d of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#d7 ,special rule for allocation of limitation for redevelopment of communities impacted by realignment or closure of military installations 7,a7 ,in general ,notwithstanding paragraph 7#a71 for calendar year #bjad 7and each calendar year thereafter7 the ,secretary shall allocate #ajj1jjj1jjj in new markets tax credit limitation among qualified development entities selected by the ,secretary to make qualified low-income community investments within the former boundaries of military installations realigned or closed pursuant to a base closure law 7as defined in section #aja7;a77#ag7 of title #aj1 ,united ,states ,code74 7,b7 ,qualified development entity mission requirement ,a qualified community development entity shall be eligible for an allocation under subparagraph 7,a7 only if a significant mission of such entity is the redevelopment of such a military installation4 7,c7 ,carryover of unused limitation ,if the new markets tax credit limitation for any calendar year exceeds the aggregate amount allocated under subparagraph 7,a7 for such year1 such limitation for the succeeding calendar year shall be increased by the amount of such excess4 4 7b7 ,effective date ,the amendments made by this section shall apply to allocations after ,december #ca1 #bjac4