In the 14 years since Philadelphia enacted a 10-year tax abatement for new residential construction and rehabilitation, the program has yielded huge benefits for the city by increasing homeownership, stimulating development, and revitalizing neighborhoods. The abatement has been one of Philadelphia’s most successful economic development policies; however, the program is under threat by members of City Council who misunderstand this powerful incentive
GPAR believes that the tax abatement program is fair and beneficial to all Philadelphians and is vital for Philadelphia to continue to grow and prosper. Without it, the city would not have experienced the revitalization currently under way as well as the population growth that effectively stemmed the decades-long tide of residents leaving Philadelphia. Instituting and any changes to it now, especially as the housing market begins to show signs of recovering, is a misguided effort. Educating the public about the positive impact of the abatement program in addition to advocating for a 20-year extension are key priorities of GPAR.
To read an in-depth 2013 study analyzing the value of the 10-year tax abatement, click here.