The Community Development Corporation (CDC) Tax Credit program rewards local businesses that contribute to economic development efforts in distressed areas of the city.
The tax credit is only available to up to 42 businesses in any given tax year. Due to the popularity of the program, we can’t guarantee that all qualified applicants will receive the credit. The City advertises open slots when they become available. We then review applications and accept 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 confirm the business is still eligible.
Qualifying organizations
An organization receiving contributions as part of the program must be one of the following:
- Qualifying CDC working on economic development activities within the City of Philadelphia
- Qualifying nonprofit intermediary
- Qualifying nonprofit organization that is 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 working on 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’s Business Income and Receipts Tax (BIRT) obligation.
Co-sponsoring a qualifying organization
Two businesses can partner to sponsor a qualifying organization. In this situation, they are both part of the agreement with the City. The $100,000 annual tax credit is divided between the two businesses in proportion to each business’s contribution, which will be specified in the contribution agreement.
Applying for the credit
Applicants must apply for the tax credit and renew their applications annually online through the Philadelphia Tax Center.
Be sure to check all the eligibility requirements before applying for credits.
Applications are due by mid-January of each year. See Notice of available openings for the specific date.
Paper applications are available for reference.
You’ll need to use the username and password associated with your BIRT account.
Renewal process
Enrolled participants must submit a renewal application each year. Renewals are due in mid-October of the current year for participation during the following calendar year.
Notice of available openings
Philadelphia Code § 19-2604(6) allows a business to receive a tax credit against its Business Income and Receipts Tax (BIRT) liability for a contribution to a qualifying organization.
For 2025, the program has four available openings for businesses seeking to partner with and contribute $100,000 per year for 10 years. These four available slots are for businesses willing to partner with a qualifying Community Development Corporation or nonprofit intermediary. There are 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 14, 2025, 11:59 p.m. on a “first-come, first-served” basis.
Applications should be submitted through the Philadelphia Tax Center.
If there are more qualified applicants than the four available openings, the Department of Revenue will hold a lottery on Thursday, January 16, 2025, 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.
Paper applications are available.
For 2025, there are four available openings for organizations receiving contributions. Only one available slot can be filled by a nonprofit intermediary because the regulation has a limit of four.
Applications reopen at the beginning of each year if slots become available, and we will update this section then.