Phila. Council OKs change in tax credit - Philadelphia Business Journal:

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Finding and keeping participants has becomes harder forthe program, which provides a 100 percenyt tax credit against the city’s businesw privilege tax to businessess that commit to an annual tax paymengt of $100,000 for 10 years. The which is expected to be signed into law by MayortMichael Nutter, would allow up to two businesse to align with a communt y development corporation to share the cost. Rick Sauer, executiv director of the , believes the ability to shar e that cost will open the door to broade rangeof businesses. Businesses could split that cost however they wantehe said, 50/50, 80/20, etc.
“What’s happening is with the drop off in the econom y andreduced profit, both businesses that have been in the prograk and those looking into it may not have that $100,000 Sauer said. The programm expanded by five slots in November to allow as many as 30 instead of the previous25 participants, Sauee said. But the economic downturn has resultedf in CDCs losingthree participants. And of the five new slotsx thathave opened, applications have only been submitted to fill three of he said. “Right now we have had a number of groups searching for newbusiness partners, but they didn’t meet the $100,0000 threshold,” Sauer said. City Councilman W. Wilson Goode Jr.
sponsored both the bill to expanrd the program and the one to allow two businesseto partner. “We took actionn to make a successful programeven better,” Good said of the passagw of Thursday’s bill. “This bill will strengthej community development corporations and help revitalize our Goode also introduced the legislation to establish a pilot CDC tax credit programin 2001. The program began acceptinf its first applications thefollowinh year.