City Councilman At-Large W. Wilson Goode, Jr. has introduced the CDC Tax Credit Expansion Bill. The legislation expands Goode’s CDC Tax Credit Program, which gives tax credits to businesses that contribute to community development corporations (CDCs) engaged in neighborhood economic development.
The CDC Tax Credit Expansion Bill would expand the program from 25 to 30 partnerships - with businesses contributing $1 million over 10 years for a full credit against business privilege tax liability. The expanded program would bring at least $5 million more in private investment to Philadelphia’s economically distressed communities over the next decade – but the return on the investment is more likely to exceed $10 million.
“The program secures a long-term flow of private capital for CDCs engaged in economic development,” said Councilman Goode. “Among other things, this money enables them to develop commercial and industrial real estate, support entrepreneurial and workforce development, and most importantly, it helps them create neighborhood jobs.”
If approved by City Council and signed into law by the Mayor, the legislation would take effect beginning with tax year 2009.
I like this as a funding mechanism
Ideally howeever I would love to see it coupled to greater transparency for CDC finances. There is a weird nexus that occassionally happens between CDC's, district council people and for-profit developers that secialize in non-profit construction.
So I like tax credits for companies investing in neighborhood economic devleopment, I'm just leary of funny business I've seen in a few CDC's.
-Sean
MrLuigi, my cat, actually only types half as badly as I do.
Your concerns are right on Sean
While there are many great CDC's in the City doing some incredible work, there are also some CDC's who are not much more than puppet organizations set up by councilpeople to benefit their allies. Many CDC's are stuck in the patronage culture that has been nurtured for years by the party.
Additionally, neighborhood activists who are great organizers but who lack non-profit management skills often end up with with huge contracts and little scrutiny over their financial management. Years of the pay to play culture had bred some leaders who are willing to use CDCs as a front to benefit themselves, family and friends and in the end it is their community who gets screwed. It happens all too often here in the 5th District.