The Community Development Corporation (CDC) Tax Credit program rewards local businesses that contribute to economic development efforts in distressed parts of the city.
The tax credit is available to a maximum of 42 businesses in any given tax year. Due to the popularity of the program, we can’t guarantee availability to all qualified applicants. The City advertises open slots when they become available. Once an opening has been announced, applications are reviewed and accepted on a first-come, first-served basis.
Business eligibility
A business is eligible to receive a tax credit of $100,000 per year if it:
- Sponsors a qualifying organization that is not already participating in the tax credit program,
- Pledges to contribute $100,000 per year to that qualifying organization for 10 consecutive years, and
- Applies for a renewal each year to establish continued eligibility.
Qualifying organizations
An organization participating in the program must fall under one of the following designations:
- Qualifying CDC undertaking economic development activities within the City of Philadelphia
- Qualifying nonprofit intermediary
- Qualifying nonprofit organization engaged in developing and implementing healthy food initiatives
Of the 42 available program slots, 40 are reserved for businesses that contribute to qualifying CDCs and nonprofit intermediaries. The remaining two slots are reserved for contributions to nonprofit organizations engaged in developing and implementing healthy food initiatives.
You can find a full description of the CDC Tax Credit, including definitions of qualifying CDCs, under Section 501 of the BIRT regulations.
Benefits
The tax credit will be applied against the Business Income and Receipts Tax (BIRT) obligation of the participating business(es).
Co-sponsoring a qualifying organization
Two businesses can partner to sponsor a qualifying organization. In this situation, both businesses are parties to a contribution agreement with the City. The $100,000 annual tax credit is divided between the two businesses in proportion to each business’s contribution, as specified in the contribution agreement.
Applying for the credit
Paper applications are available below under Forms & instructions. We strongly encourage applicants to apply for the program and annual renewal using the Philadelphia Tax Center.
- Log into your Philadelphia Tax Center account.
- Under the “Summary” tab, find your BIRT account.
- Select the “Apply for credit programs” link on this screen.
- Pick a program you wish to apply to.
- Make sure to read the brief instruction before hitting “Next” to access the full application.
Follow the on-screen prompts to complete the process. Be sure to check all the eligibility requirements before applying for credits.
Renewals and new applications are accepted at the end of the calendar year for participation during the next calendar year.
BIRT credit for contributions to a Community Development Corporation
Notice of Available Openings
Philadelphia Code § 19-2604(6) allows a business to receive a tax credit against their Business Income and Receipts Tax (BIRT) liability for a contribution to a Qualifying Organization. Currently the program has 4 available openings for businesses seeking to partner with and contribute $100,000 per year for ten years. There are four available slots for businesses willing to partner with a Qualifying Community Development Corporation or Nonprofit Intermediary and no available slots for businesses seeking to partner with nonprofits engaged in Implementing Healthy Food Initiatives.
The Department of Revenue will accept applications from businesses through Tuesday, January 16, 2024, 11:59 p.m. on a “first-come, first-served” basis. Applications should be submitted through the Philadelphia Tax Center. If there are more applicants than the 4 available openings, the Department of Revenue will hold a lottery on Thursday, January 18, 2024, at 1 p.m. via Zoom to determine who will fill the available slots. Invitations will be emailed to applicants in advance. Successful applicants will be required to execute a Contribution Agreement with the City of Philadelphia Department of Revenue.
Original paper applications are provided below.
- Qualifying Community Development Corporation or Nonprofit Intermediary (CDC/NPI) application (PDF)
- Implementing Healthy Food Initiatives application (PDF)
There are 4 available slots. Only one available slot can be filled by a Nonprofit Intermediary, as a maximum of 4 Nonprofit Intermediaries can participate, per the Regulation.