COUNCILMEMBERS HENON, GREEN EXPAND CDC FUNDING

In Bobby Henon, Council News, Derek Green, Featured, News by Derek Green

Council unanimously adopts Bill No. 180261-A to create $500,000 in grants for community development corporations

 

PHILADELPHIA, June 21, 2018 – Councilmembers Bobby Henon (6th District) and Derek Green (At-Large) announced an expansion of essential operating dollars that will be awarded to community development corporations (CDCs) for their economic development work along commercial corridors.

 

Henon’s Bill No. 180261-A adds 5 tax credit slots to the existing program, which requires a business partner to provide $100,000 a year for ten years that is credited against their business income and receipts tax (BIRT) bill by the City. Each slot is filled by lottery. With the amendment offered last week by Green, Philadelphia’s Commerce Department can instead offer the same dollars through a grant, sparing CDCs the need to find and maintain a business partner with a big enough BIRT liability.

 

“CDCs, like Tacony, Mayfair and others across the city, are doing important work to maintain and revitalize commercial corridors,” said Councilman Henon. “This legislation promises more funding for those efforts, allowing at least five other neighborhoods to get support for businesses along their local main streets.”

 

“The passage of this legislation empowers the Commerce Department to pilot an easier way for CDCs to get operating dollars. The City has shifted businesses taxes away from BIRT, creating an inadvertent burden on CDCs in tax credit slots. Thanks to the cooperation of Councilman Henon, our Council colleagues, and the Kenney administration, we can try another avenue to ensuring that the irreplaceable work of CDCs continues in even more corridors throughout Philadelphia,” said Councilman Green.

 

The funding envisioned by the legislation will become available during the next fiscal year, starting July 1, 2018.

 

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