New Market Credits Expansion Plan Proposed by Obama Administration

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The Obama administration is seeking to expand and reform tax credits aimed at stimulating investment in economically distressed communities, Treasury Secretary Geithner says. He says the new markets tax credits program has been very successful in helping to spur such investment and create or save jobs in distressed communities. The administration is proposing the changes to further encourage such investments and more directly benefit small businesses, he says. Among the changes being proposed is allowing the credit to offset not only investors' federal income taxes, but also taxes they owe under the alternative minimum tax. A simplification of associated regulations also is planned to help encourage investments, he says.