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Bill

S 4584

A bill to amend the Internal Revenue Code of 1986 to expand the new markets tax credit, and for other purposes.

119th Congress Introduced by Bill Cassidy

The bill aims to expand the New Markets Tax Credit program to boost investment in low-income communities and broaden eligibility and credit allocations.

Introduced in Senate
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WeVote Research Nonpartisan
Bill Summary · S 4584

Overview

S. 4584 (119th Congress) is a bill introduced in the Senate to amend the Internal Revenue Code of 1986 with the aim of expanding the New Markets Tax Credit (NMTC) program, along with other related provisions. The bill has a co-sponsor: Senator Bill Cassidy. It was read twice and referred to the Senate Committee on Finance on May 20, 2026.

Main purpose and intent

  • Expand the New Markets Tax Credit program. The NMTC is a federal program designed to stimulate investment in low-income communities by providing tax credits to investors in eligible community development projects.
  • The bill seeks to broaden or enhance the availability, scale, or impact of NMTCs, potentially by increasing allocation authority, broadening eligible activities or geographies, or refining statutory rules to improve the effectiveness of NMTC investments.

Key provisions and changes (as implied by the bill’s title and typical NMTC amendments)

  • Amendments to the Internal Revenue Code related to NMTCs:
    • Increase or adjust credit allocation authority to support more projects in distressed or underserved areas.
    • Modify eligibility criteria for qualified low-income community investments or qualified active low-income community business (QALICB) projects.
    • Clarify or expand the types of investments or activities that qualify for NMTCs, possibly including a broader set of community development initiatives.
    • Adjust calculation, timing, or transfer rules for NMTCs to improve investor certainty and program efficiency.
  • Administrative or compliance enhancements:
    • Potential changes to reporting, due diligence, or documentation requirements for qualified projects or investors.
    • Possible alignment with related economic development or housing goals.

Note: The summary relies on the bill’s title and standard NMTC expansion patterns. The full text would provide precise language on eligibility, credit amounts, allocation caps, sunset provisions (if any), and any interaction with other tax provisions.

Who would be affected

  • Qualified active low-income community businesses (QALICBs) and projects located in targeted communities would potentially access NMTCs more readily.
  • Investors in NMTC-eligible projects could receive enlarged or more readily available tax credits, influencing project financing structures.
  • State and community development entities responsible for allocating NMTCs and administering the program could see changes in allocation processes or oversight.
  • Taxpayers and developers engaging in community development activities in low-income or distressed areas.

Procedural and timeline aspects

  • Introduction and referral: The bill was introduced in the Senate and referred to the Committee on Finance on May 20, 2026.
  • Committee process: As with most tax-related bills, the Finance Committee would typically review, possibly amend, and report the bill to the full Senate. The specific timeline for hearings, markups, and potential floor action would depend on committee priorities and legislative calendar.
  • Next steps: If reported, the bill would move toward floor consideration in the Senate, followed by potential conference or passage actions with the House, and ultimately presidential consideration.

Additional notes

  • The sponsor listed is a co-sponsor: Senator Bill Cassidy. The presence of a co-sponsor can signal bipartisan support, but the bill’s ultimate passage depends on committee action, floor votes, and broader fiscal considerations.
  • Without the full text, certain details (such as exact credit amounts, eligibility tests, sunset clauses, or interaction with other tax incentives) cannot be stated definitively.

If you’d like, I can refine this summary once the bill’s full text or a more detailed synopsis becomes available, to include precise provisions, dollar figures, allocation caps, and timelines.

Compiled from official sources — confirm details with the bill’s official record.

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