Downtown Redevelopment Districts: Overview and Implementation Strategies
By: Scott Ziance and Chris Clements
Amended Substitute House Bill 233 (HB 233), which became effective August 5, 2016, established the procedure for designating so-called downtown redevelopment districts (DRDs) and innovation districts. These districts operate much like tax increment financing (TIF) areas except that the collected service payments generally can be utilized for a wider range of uses than TIF service payments. These powerful new tools can also be combined with many existing economic development incentive opportunities to maximize value. The key to the successful implementation of DRDs and innovation districts is determining when to utilize the correct incentives mix in the given circumstances. Read more.
Is Your Project a Candidate for NMTC Funding?
By: Joseph B. Mann and Kelly B. Bissinger
The federal New Markets Tax Credit (NMTC) program was created in 2000 for the purpose of encouraging investment in businesses and commercial projects, including real estate development, that benefit low-income communities. The NMTC program is not permanent, but rather is subject to Congressional renewal. Historically renewal has often been for one to two years at a time. However, in 2015 the NMTC program was extended through 2019, with $3.5 billion in allocation authority for each year in this period. This unprecedented extension has created greater certainty that funding will be available to the NMTC program over the next several years (though the increased possibility of comprehensive tax reform as a result of the recent election results in additional uncertainty for federal income tax benefits generally). The following provides a brief description of the
NMTC program, and projects that may benefit from credits. Read more.
Around the Web
Austin Mayor: Business Incentives Shouldn't Be ‘Bad Word' – Austin Monitor
TIF Bond Issues Last Year Hit Highest Level Since 2006 – Wall Street Journal
TIF for tat: Mayors make renewed push for development tax incentive – Phoenix Business Journal
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