Fair Pay for Federal Contractors Act of 2025

Senate Bill

S. 2963

119th Congress

Fair Pay for Federal Contractors Act of 2025

In Committee

Introduced:Oct 1, 2025

Primary Sponsor

Tina Flint Smith

Senator

Democratic

MN

Cosponsors

9

Quick Stats

Policy Area

Taxation

Summary

This bill provides a tax credit to investors who put money into Community Development Financial Institutions (CDFIs). CDFIs are organizations that provide financial services and support to low-income and underserved communities. The tax credit starts at 3% for the first 10 years of investment and then increases to 4%. The total amount of tax credits available is capped at $1 billion in 2022, $1.5 billion in 2023, and $2 billion each year after that.

Latest Action

Read twice and referred to the Committee on Finance.

AI Summary

Plain-English explanation of this bill

This bill provides a tax credit to investors who put money into Community Development Financial Institutions (CDFIs). CDFIs are organizations that provide financial services and support to low-income and underserved communities. The tax credit starts at 3% for the first 10 years of investment and then increases to 4%. The total amount of tax credits available is capped at $1 billion in 2022, $1.5 billion in 2023, and $2 billion each year after that.

Last updated: 12/29/2025

Official Summary

Congressional Research Service summary

Community Development Investment Tax Credit Act of 2023 This bill allows investors a business-related tax credit for investment in a Community Development Financial Institution (CDFI). The applicable percentage of such credit is 3% for the first 10 years of investment in a CDFI with a 1% increase after the initial credit allowance date and for investments without a fixed term or duration. The tax credit is available to investors who invest in various CDFIs to provide financial support for increasing wealth in low- and moderate-income communities. The national limitation on the credit is $1 billion for 2022, $1.5 billion for 2023, and $2 billion for 2024 and each year thereafter, with adjustments for inflation.

Key Points

Main provisions of the bill

Investors can claim a tax credit for investing in CDFIs, which provide financial services to underserved communities.
The tax credit starts at 3% for the first 10 years and then increases to 4% after that.
There is a national cap on the total amount of tax credits available, starting at $1 billion in 2022 and increasing to $2 billion in 2024 and beyond.

How This Impacts Americans

Potential effects on citizens and communities

If this bill becomes law, it would incentivize more investment in CDFIs, which could lead to increased access to financial services and support for low-income and underserved communities across the country. Individuals and businesses in these communities would be the primary beneficiaries, as they would have greater opportunities to build wealth and economic stability.

Policy Areas

Primary Policy Area

Taxation

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

2963, 119th Congress (2025). "Fair Pay for Federal Contractors Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/118-s-2963