query: tax credit leverage

colist-admin at comm-org.utoledo.edu colist-admin at comm-org.utoledo.edu
Wed May 2 08:07:07 CDT 2001


[ed:  please copy COMM-ORG with any sources addressing Andrew's query.]

From: "Andrew Carter" <andrew.carter at gle.co.uk>

Dear Colist,

I am looking for information relating to the impact of tax credits in 
acting as catalysts for levering private investment into LMI neighbourhoods 
for community development, neighbourhood revitalisation and small business 
development.

The background to this request is that on the 1 March 2001 the UK 
Chancellor Gordon Brown launched the Government's consultation document - 
Enterprising Communities - on a new tax credit for private investment in 
disadvantaged communities.

The aim of the 'tax credit' would be to attract greater flows of private 
investment into enterprises in disadvantaged communities * but to do this 
in a way that also helps to build skills and capacity, to promote long-term 
success.  It follows on from an initial report which stated that a tax 
credit at 5% pa could create £1 billion of investment into the UK most 
deprived areas.

I am particularly keen for reports, evaluations etc that look at the level 
of private investment raised; the issues around managing the tax credits; 
and, how the demand for the money from CDCs and other community 
organisations was maximised.  Most I presume will come from the LIHTC but I 
guess there must be other tax credits that hav stimulated the 
interest.  Was there any background research and consultation done in 
preparation for the New MArkets Tax Initiative which is currently coming on 
stream?

Any pointers would be welcome and much appreciated.

Andrew Carter







More information about the Colist mailing list