Results

Jan. 9, 2014 1:42 pm

Supporters of New Market Tax Credit Program Hope for Extension

The Karabots Pediatric Care Center in W. Philadelphia used NMTCs to draw investment New Market Tax Credits, established by the Community Renewal Tax Relief Act of 2000, are in danger of drying up if Congress decides not to extend the federal program. Legislation was introduced to make the credit permanent, but a push to cut […]

no text

The Karabots Pediatric Care Center in W. Philadelphia used NMTCs to draw investment


New Market Tax Credits, established by the Community Renewal Tax Relief Act of 2000, are in danger of drying up if Congress decides not to extend the federal program.

Legislation was introduced to make the credit permanent, but a push to cut loopholes and subsidies out of the tax code has left the program vulnerable. 

Like other cities struggling to attract investment, Philadelphia has a considerable stake in the program’s extension: in recent years, NMTCs have drawn investment to major development projects such as the Karabots Pediatric Care Center, the Paseo Verde housing development in North Philadelphia, and the NewCourtland LIFE Center in Germantown.

Projects utilizing NMTCs that are currently in progress include the Eastern Tower Community Center in Chinatown, a supermarket in Mantua and the Edison Square shopping strip.

Andrew Frishkoff, executive director of the Philadelphia branch of the Local Initiatives Support Corporation (LISC), stressed that NMTCs are key to his organization’s community development work.

“The impact of losing NMTC is that Philadelphia would be poorer and less healthy,” Frishkoff wrote in an email.

From our Partners

How NMTCs work gets complicated, but essentially they provide a tax credit, or decrease in tax liability, to investors that provide equity to registered Community Development Entities (CDE) financing development projects in low-income communities.

Organizations such as LISC and the Philadelphia Industrial Development Corporation (PIDC) use their NMTC allocations to finance a variety of projects. Many of these projects could stop dead in their tracks if the NMTC program is not extended.

“Immediately and locally, there are at least ten projects in our pipeline that will not move forward,” said Sam Rhoads, executive vice president of PIDC. 

-30-

From our Partners

Gentrification and affordable housing: What’s the remedy to a sick situation?

From Disenfranchisement To Empowerment: Uplifting Neighborhoods

Going Beyond the Dollar: Strengthening the Support System of Grandfamilies

SPONSORED

Generocity Philly

Meet Kim Andrews, new executive director for The Fund for Women and Girls

Wallingford, PA

Pendle Hill

Events Coordinator

Apply Now
Media, PA

The Foundation for Delaware County

Communications Manager

Apply Now
Philadelphia, PA

Maternity Care Coalition

Therapist (MFT)

Apply Now

Village of the Arts seeks to deepen and scale its impact as it reflects on its legacy

How Temple’s Small Business Development Center is working to bridge the digital divide

When ‘who are you’ isn’t an existential question, but a community-building one

SPONSORED

Generocity Philly

Be the leader to bring a 26-year mission into the future in Chester County

Philadelphia, PA

Maternity Care Coalition

Clinical Supervisor

Apply Now
Philadelphia, Pa

Community Legal Services

Housing Unit: CO-Managing Attorney

Apply Now
Philadelphia, Pa

Community Legal Services

SENIOR ACCOUNTANT

Apply Now
   
       
       

Subscribe to Generocity

       
* indicates required