Special new markets tax credit rule for counties in which the Federal government owns a large portion of land

(a) In general Section 45D(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (6) Low-income communities with population densities suppressed by uninhabited Federal lands (A) In general In the case of any population census tract located in a county in which not less than 30 percent of the land is owned by the Federal Government on December 31, 2025, paragraph (1)(A) shall be applied by substituting 15 percent for 20 percent. (B) Treatment of military installations For purposes of this paragraph, land used as a military installation shall not be treated as land owned by the Federal Government. (C) Treatment of Federal lands held in trust for tribes For purposes of this paragraph, land owned by the Federal Government and held in trust for Native Americans shall not be treated as land owned by the Federal Government.. (b) Effective date The amendment made by this section shall apply to investments made after December 31, 2025.