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SOURCE Office of Congressman Chaka Fattah
The tax credits allocated to PIDC and The Reinvestment Fund, Inc. are geared to help economically distressed communities attract private investment capital
WASHINGTON, June 9, 2014 /PRNewswire-USNewswire/ -- Congressman Chaka Fattah (PA-02) announced today that two community development entities (CDEs) in Philadelphia have received allocations from the Treasury Department for tax credits to spur private investment in the city's low income neighborhoods.
The Philadelphia Industrial Development Corporation (PIDC) was allocated $38,000,000, and The Reinvestment Fund, Inc. was allocated $43,000,000 in tax credits through the New Markets Tax Credit (NMTC) program.
Fattah, who will deliver a keynote address to the NMTC Coalition tomorrow, June 10 in Washington, said the program is critical for drawing and expanding investments in areas with high rates of poverty and unemployment. Every development project assisted by NMTC is designed to bring new goods and services, economic opportunities, and jobs to these areas.
"At a time when we must be doing everything we can to spur economic development and job creation around the country, I am thrilled to see more than $80 million in new market tax credits allocated to support Philadelphia," Fattah said. "These two organizations have done extraordinary work throughout our community and these new allocations will fuel even more investment to revitalize some of the area's most economically depressed neighborhoods."
PIDC and The Reinvestment Fund were two of the 87 CDEs nationwide who received an allocation of the total $3.501 billion in tax credits announced late last week. Last fall, Fattah wrote to Treasury Secretary Jacob Lew in support of PIDC's application, praising their history of success stimulating investment in the city, including two community health centers, two supermarket-anchored shopping centers in communities lacking fresh food options, and a social service center that provides health, education, and legal services to low income residents.
"PIDC is delighted to have been selected again for an allocation of New Markets Tax Credits," said John Grady, President of PIDC. "We have already invested $110 million from prior allocations into projects that are eliminating blight, creating over 950 jobs, and transforming communities. As the only awardee exclusively focused on Philadelphia, we look forward to deploying this new allocation of credits to attract additional investment and create jobs in the neighborhoods of Philadelphia that need it most."
The New Market Tax Credit Program was established by Congress in 2000. It attracts investment capital to low-income communities by permitting investors to receive a tax credit against their Federal income tax returns in exchange for equity investments in Community Development Entities. For every $1 invested by the federal government, the NMTC program generates over $8 in private investment.
"The NMTC program has had a transformative influence in Philadelphia, allowing TRF and other local CDEs to invest in the revitalization of long-neglected communities," said Don Hinkle-Brown, President and CEO of The Reinvestment Fund. "TRF's NMTC-supported projects have helped bring healthy food access, quality educational opportunities and more than 1,500 permanent jobs as well as over 4,700 construction jobs to Philadelphia. We're excited for the opportunities TRF's new $43 million award will bring."
Congressman Fattah, who serves a chairman of the bipartisan Congressional Urban Caucus, has been a staunch advocate for the NMTC Program. He recently authored a letter of support with his Caucus co-chair Congressman Michael Turner (R-OH), calling for an extension of the program, which expired at the end of 2013.
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