The Pennsylvania Housing Finance Agency is accepting bids for the purchase of $4.5 million in mixed-use development tax credits.
The funds collected from successful bidders will be used for the construction or rehabilitation of mixed-use developments in Pennsylvania communities. The deadline for bids is 2 p.m. on Friday, July 15.
These tax credits will be used by the winning bidders – which can be companies, organizations, or individuals – to reduce their state tax liability, PHFA said.
The intent of the bidding process is to raise as much funding as possible from the $4.5 million in tax credits being made available to provide for a significant investment in community revitalization projects in various communities.
The projects to receive this funding will be selected during a competitive request for proposals process later this year.
This tax credit program was created as part of the state’s fiscal year 2016-2017 budget (implemented July 1, 2017), and PHFA was directed to administer the credit.
PHFA was authorized to sell these tax credits through directed or negotiated sale to any qualified taxpayer. It is expected that the tax credit awards will be made within 90 days after bidding closes.
The credit awards will be made in 2022, but they are not effective for utilization until 2023 against a 2022 tax liability.
“We have had solid support for this program from the private sector during its first five years,” said PHFA Executive Director and CEO Robin Wiessmann. “The value of mixed-use developments is that they not only provide much-needed affordable housing, but their commercial component adds an economic development spark in those communities.”
More information about the mixed-use development tax credit and the current bidding process is available on the PHFA website.