PIDC AWARDED $50 MILLION IN NEW MARKETS TAX CREDITS
Mayor Michael A. Nutter and PIDC president John Grady recently announced that PIDC received $50 million in New Market Tax Credits (NMTC) through the U.S. Treasury Department’s Community Development Financial Institutions (CDFI) Fund. These federal tax credits are utilized to spur private sector investment in targeted neighborhoods throughout the country. Nationally, the U.S. Treasury Department released $3.5 billion in NMTC awards, and PIDC was one of only 70 organizations to receive this funding.
“This New Market Tax Credits award of $50 million to PIDC is a great opportunity for our City to use federal tax credits to spur private investment,” said Mayor Nutter. “Working with our partners at the Federal government and throughout the private sector, PIDC has a tremendous reputation for accomplishing projects. This funding will help the City to spur greater private investment in our neighborhoods and to encourage developers to think creatively about new development ideas.”
The City and PIDC will use this allocation to support a comprehensive strategy of building sustainable neighborhoods and revitalizing business corridors by attracting investments that create jobs, eliminate blight, stimulate investment and provide goods and services in targeted neighborhoods. PIDC intends to use its NMTC funding to support four main types of investments: supermarket anchored shopping centers, health care services facilities, manufacturing space, and mixed-use developments.
John Grady, President of PIDC, said, “PIDC is delighted to have been selected for an allocation of credits through this highly competitive application process. We look forward to working in close partnership with the City to identify projects and deploy these credits to attract private investment and create jobs in Philadelphia’s neighborhoods.”
PIDC last received a NMTC award in 2007 for $60 million, which was used to finance four projects in the city. These tax credits leveraged more than $127 million in project financing and created more than 700 permanent and construction jobs. Those projects are the Superfresh market and retail complex, which opened last year at 2nd Street and Girard Avenue; a mixed-use redevelopment of 600 N. Broad Street; tenant fit-out for laboratory and office space at the University City Science Center; and the construction of the Hilton Homewood Suites extended stay hotel in West Philadelphia.
To learn more about eligibility to apply for New Market Tax Credits through PIDC, please contact PIDC’s Market Development group at 215-496-8157.