Goode Introduces Bill to Expand & Modify CDC Tax Credit Program

Councilman Goode introduced a bill (No. 110561) September 8 amending the City’s CDC Tax Credit Program that would:

·         Expand the program from 30 to 40 partnerships; and

·         Maintain the $100,000 contribution for ten years, but reduce the credit from 100% to 75% for new agreements entered into after the bill becomes law (the reduction in the credit would not apply to any business that has executed a contribution agreement prior to the date the bill becomes law, unless that agreement is terminated before the end of the ten year term).

The bill has been referred to the Committee on Commerce and Economic Development, but no hearing date set.  The bill can be downloaded from the City’s web site at:

http://legislation.phila.gov/detailreport/?key=11500.

This legislation is a follow up to a bill introduced by Councilman Goode in March 2011 that would have put a temporary moratorium on new contribution agreements under the City’s CDC Tax Credit Program to allow time for possible revisions to the program as the first group of partnerships neared the end of their initial ten year term.  PACDC has advocated for a balanced approach that would enable CDCs that have performed well to continue to participate in the program, while creating opportunities for other CDCs and intermediaries to participate in the program for the first time.