Philadelphia will get $50 million in New Market Tax Credits from the federal Community Development Financial Institutions Fund.The federal government has offered tax credits for decades to businesses that set up shop in low-income areas. But support gradually has been transitioning to using federal dollars to produce more dollars — to be the kick-starter for private investment in big projects. They’re a big tool for a city, when it can get them.
“These dollars to go targeted neighborhoods to create the kinds of development that might not happen, honestly, without this particular federal government incentive to the private sector,” said Mayor Michael Nutter. The mayor appeared Friday with the leaders of the Philadelphia Industrial Development Corporation to make the announcement.
PIDC will manage the disbursement of the tax incentives.
Nutter called the occasion “a great chance to invest in diverse, resourceful communities, and to create jobs for Philadelphians and new developments that will spur even more private sector growth, development and investment. This is, quite frankly. quite exciting.”
The last time Philadelphia won New Market Tax Credits, in 2007, the city used them to encourage investors in four major projects throughout the city, including the shopping center at Second and Girard, anchored by a big supermarket.
PIDC also wants to support spaces for health-care delivery and manufacturing as well as mixed-use developments.PIDC president John Grady says the sort of project on the table this round could be the redevelopment of empty structures, such as Tasty Baking Company’s old factory.