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In both Washington, DC and Columbia, legislative efforts impacting community development are in progress, and we want to update you on state and federal conversations that affect your ability to invest in community.
Preserving Incentives
Currently, a 33% credit is provided for each dollar invested in or donated to a certified CDC or CDFI through the SC Community Development Tax Credit, significantly reducing the effective cost of making a donation and allowing a donor to earn an attractive rate of return on their investment. SCCLF is standing with other community development advocates to protect this credit, which is currently being considered by the State Senate Finance Committee.
Protecting Existing Allocations
Earlier this month, the fiscal year 2019 federal budget proposal was released and proposes a $234 million dollar cut to the
CDFI fund. The budget also proposes deep cuts to funding for the
Healthy Food Financing Initiative,
New Markets Tax Credit, and other community development funding opportunities through Housing and Urban Development and the USDA. You can help protect this critical funding by
contacting your Members of Congress and asking them to support CDFI fund appropriations in the 2019 budget.
Supporting Additional Investment Programs
Although the 2019 proposed budget's passage would be devastating, a new community development program was established in the Tax Cuts and Jobs Act of 2017. Led in part by SC Senator Tim Scott, the
Opportunity Zones program will provide tax incentives for investors to re-invest their capital gains into funds dedicated to investing in designated Opportunity Zones. The zones will encompass communities in both rural and urban low-income areas and the zone selection process is currently underway.
Whether you are securing financing for your community development project or have invested capital in our communities, we want you to know that we are committed to advocating for the state and federal legislation that supports your efforts. The year ahead presents legislative challenges and opportunities, and we remain as committed as ever to our mission of advancing equitable access to capital across South Carolina.
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