City Council unanimously approved Bill No. 180621 on Thursday, June 21st that will ensure that $500,000 more per year is made available for the economic development work of CDCs. Read PACDC’s letter to City Council urging them to approve the bill. Originally, the bill created 10 new CDC Tax Credit slots, but was amended on the floor of Council. You can read testimony of PACDC and our member organizations at the committee hearing for the original draft of the bill here.
Championed by Councilmen Bobby Henon and Derek Green, the bill would expand the number of slots in the CDC Tax Credit Program from 40 to 45, unless the $500,000 in grant funds is made available. Should the Kenney Administration or future Mayors fail to provide the $500,000 in funding, this would automatically trigger the opening of five new CDC Tax Credit slots at $100,000 per year for ten years.
PACDC anticipates that the Kenney Administration will make the $500,000 in grant funds available, and will use it to support CDCs that have been unable to get into the CDC Tax Credit program because of limited number of slots, or their inability to find or retain corporate partners that have adequate tax liability to participate in the program. Under the program, up to two businesses with a combined Business Income and Receipts Tax (BIRT) liability of $100,000 or more can contribute $100,000 to their partner CDC and claim the full amount as a credit on their city taxes.
These funds will be used by CDCs to support small businesses and job seekers to create more economic opportunity and vibrancy in our neighborhoods, on commercial corridors and beyond. Learn more about PACDC’s work in this area in our Commercial Corridor Policy Agenda