The Pennsylvania Housing Finance Agency (PHFA) announced Tuesday that it is accepting bids for the purchase of $2 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 projects to receive this funding will be selected during a competitive Request for Proposals process later this year.
Winning bidders, which can be companies, organizations, or individuals, can use the tax credits to reduce their state tax liability.
This new tax credit program was created as part of the Commonwealth’s fiscal year 2016/2017 budget. PHFA was directed to administer the credit and was authorized to sell the tax credits through directed or negotiated sale to any qualified taxpayer.
PHFA expects that the tax credit awards will be made within 90 days after bidding closes. The credit awards will be made in 2019, but they are not effective for utilization until 2020 against a 2019 tax liability.
“The money raised through the sale of these tax credits will be used to fund mixed-use developments that have the potential to spark continued economic development across the state,” PHFA Executive Director and CEO Brian A. Hudson Sr. said. “The strength of this program is that it taps into market forces to finance the construction of important community revitalization projects that might otherwise not happen.”
The deadline for bids is 2 p.m. on Friday, June 14.