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03/29/2024 11:14 AM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20130&cosponId=14555
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House of Representatives
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted: April 16, 2014 11:14 AM
From: Representative Thomas H. Killion
To: All House members
Subject: Neighborhood Assistance Program Tax Credit
 
In the near future I intend to introduce legislation to build upon the success of the Neighborhood Assistance Program (NAP) Tax Credit.

NAP Tax Credits are an important component in many community revitalization projects which create jobs and investments in our communities. NAP supports local job training, crime prevention, and food bank programs, as well as blight remediation and the development of homes within reach of low wage workers and people on fixed incomes. NAP is also used to address homelessness.

NAP was established in 1967 to encourage businesses to support non-profit neighborhood improvement programs. It soon became a national model. Moreover, as successful as NAP has been, its reach is limited both by funding and by program structure. My legislation will expand NAP, make it more competitive and increase the appropriation.

Summary of the changes to NAP:

Affordable Housing Tax Credit
This would be a new tax credit available to business and non-profit developers of affordable housing. The proposal sets aside $10 million of the increased funding for AHTC and splits that amount between the non-profit and for profit sectors. The credit is 90% of the contribution.

A $10 million investment in housing rehab generates an additional $12.8 million in economic activity, including 200 jobs.

Intermediaries
Some organizations find it difficult to use the NAP credits because they are in regions of the state without a corporate presence. To assist those organizations, intermediaries would be allowed to participate. The intermediaries would be multi-county or statewide non-profit organizations. After receiving the contributions they would distribute the money primarily to neighborhood organizations with eligible projects in underserved areas.

Increase the credit rate
To be more competitive, the basic rate would increase from 55% to 75%, Special projects and 5 year commitments would go from 75% to 90%, and 6+ year commitments would be a 100% credit.

Increase the appropriation
In order to build on the success of NAP the appropriation needs to be increased from $18 million to $36 million. The current funding for 2013-14 has already been committed. Demand exceeds funds available.

A copy of the legislation is attached, but if you have any questions, please contact Alison in my Harrisburg office at ahagler@pahousegop.com.

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Introduced as HB2241