Philadelphia has snagged $60 million in federal tax credits for development projects along commercial corridors citywide. So crows Mayor John Street and the Philadelphia Industrial Development Corp., which competed against other places for the funds.
Give the city credit for pursuing the money, although its publicity was a week late and bit curious. According to the city's press release, PIDC was "the only allocatee in the Commonwealth of Pennsylvania in this fifth round of awards." Yes, but the U.S. Treasury Department's Community Development Financial Institutions Fund, which administers the grants, lists at least eight allocatees from other places that will be investing in projects specifically in Pennsylvania, meaning credits may be available on the ground here, whether or not they come through PDIC. (There are 10 listed for New Jersey.) An odd omission from the city, although technically PDIC is correct in calling itself the only allocatee from Pennsylvania that facilitate credits.
According to the PDIC, "the New Markets Tax Credits Program permits taxpayers to receive a credit against federal income taxes for making qualified equity investments. The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year credit allowance period."
Comments (1)
Hats off to PIDC for bringing more New Markets Tax Credits to Philadelphia. Last round there were more Pennsylvania awardees, including PNC, Sovereign Bank, PHFA, and The Reinvestment Fund (where I work).
Posted by Don HB | October 17, 2007 9:23 AM
Posted on October 17, 2007 09:23