Smith, Colleagues Introduce ‘Rural Jobs Act’ to Fight Rural Poverty, Create Jobs

Bipartisan, Bicameral Legislation Would Boost Investment in Rural and Distressed Communities

WASHINGTON, D.C. – U.S. Representatives Jason Smith, R-Mo. and Terri Sewell, D-Ala., along with U.S. Senators Roger Wicker, R-Miss., Mark Warner, D-Va., Shelley Moore Capito, R-W.Va., and Ben Cardin, D-Md., today introduced the “Rural Jobs Act” in the U.S. Senate and House of Representatives. This bipartisan, bicameral legislation would build on the success of the New Market Tax Credit (NMTC) by bringing hundreds of millions of dollars in private investment to some of the poorest rural communities in America.

“The Rural Jobs Act will allow for new economic opportunities in the areas of our country that need it the most,” Congressman Smithsaid. “By building on the success of the New Markets program, the Rural Jobs Act will bring investment to rural communities with persistent poverty and high migration. It is too often that rural communities are overlooked by Washington. This legislation is a targeted approach that will encourage investment in rural America.”

“The Rural Jobs Act would be an important addition to the successful New Market Tax Credit program, which has spurred tens of billions in private investment in many distressed communities across America,” Senator Wicker said. “The legislation we have introduced today would help boost these investments in rural areas and ensure that every community is receiving a proportionate share of the benefits of the NMTC.”

“During my time as Governor and in the Senate, I’ve supported initiatives to help create jobs and boost economic opportunity for all Virginians. There’s a lot happening in parts of Southwest and Southside Virginia, but we still have more work to do to ensure that no part of Virginia is left behind. That’s why I’m proud to introduce this legislation to set aside additional tax credits for rural and underserved regions,” Senator Warner said.

“The New Markets Tax Credits program has played a vital role in helping economically distressed communities in West Virginia attract the private capital needed for economic development investments,” Senator Capito said. “The Rural Jobs Act expands upon this already powerful tool by ensuring these investments occur in the communities that need them the most. I’m proud to support this legislation that I know will go a long way in providing the boost these areas of West Virginia need.”

“In Maryland, the New Markets Tax Credit has been deployed throughout our state on a diverse range of infrastructure and community development efforts. I am pleased to support this bipartisan legislation, which will further the reach of the program to low-income rural communities, creating jobs and stimulating our economy across Maryland and across America,” said Senator Cardin.

“Alabama’s 7th District knows from experience that the New Market Tax Credit is a proven, cost-effective incentive that spurs investment in areas like Aliceville, where the credit helped transform the Huyck Felt brick plant into a new wood pellet manufacturing facility, creating 275 jobs, and Selma, where the program helped create 55 jobs at a biomass processing facility,” Rep. Sewell said. “Too many small towns are struggling to survive, which is why it is critically important that we expand the NMTC to incentivize investment in rural areas and, especially, persistent-poverty rural areas like many of those in the Black Belt to help ensure these communities are not left behind.”

The Rural Jobs Act would expand upon the NMTC program, which provides a modest tax incentive to private investors to invest in low-income communities. NMTC projects have spurred over $42 billion in private investment and generated over 1 million jobs since 2000. However, less than one in four NMTC jobs have been created in rural communities.

The Rural Jobs Act would help to close the job creation gap by designating $500 million in NMTC investments for “Rural Job Zones,” which are low-income communities that have a population smaller than 50,000 inhabitants and are not adjacent to an urban area. Under this new definition, Rural Job Zones would be established in 342 out of the 435 congressional districts across the country.

The bill would also require that at least 25 percent of this new investment activity be targeted to persistent poverty counties and high migration counties. There are approximately 400 persistent poverty counties in the United States, 85 percent of which are located in non-metro or rural areas.

The First Regular Session of the 100th General Assembly of the State of Missouri began with a call from the governor to prioritize workforce development and infrastructure investment. Over the course of the past 10 weeks, the Missouri Senate has focused on these and many other issues including some that required lengthy debate and deliberation.

The Senate approved four of my legislative proposals. Senate Bill 21 will allow the City of Portageville to propose a 1/4 cent sales tax for the purposes of improving public safety. 

Senate Bill 89 will allow the director of revenue to waive the written and skills test for military applicants who have been trained to operate a commercial vehicle while serving our country. This legislation will make it easier for military personnel to obtain a civilian CDL when they leave the military.

Senate Bill 20 extends the DNA Profiling Analysis Fund. Without this extension, it would create a funding shortfall of approximately $909,579 annually. The DNA Profiling Analysis Fund can only be used by the Highway Patrol crime lab to fulfill the purposes of the DNA profiling system. DNA profiling is a powerful tool used by our law enforcement officers to help solve crimes.

Senate Bill 90 will require all employers with 50 or more workers to report quarterly wage information to the Division of Employment Security in an electronic format. The director will still have the authority, if good cause is shown, to allow paper filing. This will allow the Division of Employment Security to process the information more accurately and in less time.

Senate Bills 21, 89, 20 and 90 have been sent to the Missouri House of Representatives for a committee hearing.

In addition to these legislative proposals, my colleagues and I continue to discuss practical solutions for funding of education across the state. One of the more contentious proposals is Senate Bill 160, a bill that would create the Missouri Empowerment Scholarship Accounts tax credit program. I do not support this proposal because it could cost the state up to $25 million in General Revenue. In addition, I believe if this legislation were to pass, it would be a detriment to public school resources. As legislators, we have a responsibility to provide the best public education investment possible.

When we return from spring break on March 25, I look forward to the debate on one of my top legislative priorities, Senate Bill 19. This bill eliminates probation or parole for anyone found guilty in the first, second, third or fourth degree of assaulting a law enforcement officer, firefighter or emergency medical provider while performing their official duties. Our emergency responders need to know that members of the Missouri General Assembly have their back. As chairman of the Senate Transportation and Public Safety Committee, I will keep this important issue at the forefront of theMissouri Legislature’s agenda during the remaining weeks of session.

Please visit your State Capitol and stop by our office in room 422, or call (573) 751-4843 with any questions, concerns or comments you may have. I am honored to serve the citizens of the 25th Senatorial District.