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PHILADELPHIA-The Philadelphia Industrial Development Corp. has been awarded $60 million in New Markets Tax Credits from the federal government. The NMTC program is administered by the Community Development Financial Institutions Fund of the US Treasury.
It permits taxpayers to receive a credit against federal income taxes for qualified equity investments in designated community development projects. The investments must be targeted to low-income communities.
The tax credit totals 39% of the cost of the investment and is claimed over a seven-year period. In each of the first three years, the investor receives a credit equal to 5% of the project cost, and receives a 6% credit for each of the final four years.
To date, CDFI has made 294 awards totaling $16 billion in this highly competitive program. This is its fifth round, and the PIDC award was the only one made to Pennsylvania in the current round.
"I am so pleased that the City of Philadelphia was able to successfully compete for this New Markets allocation," says Mayor John Street. He notes that it coincides with the launch of the ReStore Philadelphia Corridors program, recently reported by GlobeSt.com.
The federal funding will arrive in early 2008. "This $60 million will provide much-needed community and economic development funds in Philadelphia's neighborhoods and will expand PIDC's resources by providing capital that helps bridge funding gaps," says Peter Longstreth, PIDC president, in a statement. PIDC is currently soliciting inquiries regarding project eligibility. A call to the PIDC person fielding inquiries was not returned by deadline.
PIDC is a nonprofit, private corporation, created by the Greater Philadelphia Chamber of Commerce and the city in 1958. Its purpose is to promote economic development and job creation and it provides financing programs and real estate to businesses and developers throughout Philadelphia.
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