Senate bill rewrites rural poverty rules for federal tax credit

What does this do?

S 4584 modifies the New Markets Tax Credit, a federal program that gives investors tax credits for funding businesses in low-income communities. The bill excludes institutionalized residents such as prisoners and nursing home occupants from poverty rate calculations in qualifying rural counties. It also lowers the poverty rate threshold from 20 percent to 15 percent for communities in counties where the federal government owns at least 30 percent of the land.

Who does it affect?

The changes directly affect investors, businesses, and residents in rural counties with population loss and in counties with heavy federal land ownership. Land held for military bases or in trust for Native American tribes does not count toward the 30 percent federal ownership threshold.

Why does it matter?

Excluding institutionalized residents from poverty counts could shift which rural areas meet the eligibility threshold for the tax credit. Lowering the poverty threshold for federally land-heavy counties could expand the number of census tracts that qualify under the program.

Where does it stand?