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Urban Studies and Planning Commons

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Economics

Matthew Freedman

Tax Credits

Articles 1 - 2 of 2

Full-Text Articles in Urban Studies and Planning

Tax Incentives And Housing Investment In Low-Income Neighborhoods, Matthew Freedman Sep 2015

Tax Incentives And Housing Investment In Low-Income Neighborhoods, Matthew Freedman

Matthew Freedman

This paper examines how tax incentives to promote housing investment affect communities by exploiting the lottery structure of Missouri’s Neighborhood Preservation Act (NPA). The NPA offers tax credits to homeowners and developers that improve or expand the owner-occupied housing stock in low-income areas. Taking advantage of the random assignment of NPA tax credits and detailed property-level data, I find that the program increases construction activity modestly. There are positive but highly localized spillovers on neighbors’ investment behavior. Spillovers on property values are larger in geographic scope, implying important roles for both neighbor interactions and amenity effects in local housing ...


Place-Based Programs And The Geographic Dispersion Of Employment, Matthew Freedman Jun 2015

Place-Based Programs And The Geographic Dispersion Of Employment, Matthew Freedman

Matthew Freedman

Government efforts to improve local economic conditions by encouraging private investment in targeted communities could affect the broader geographic distribution of employment in a region, especially to the extent that subsidized businesses face few constraints on whom they hire. This paper examines the labor market impacts of investment subsidized by the U.S. federal government’s New Markets Tax Credit (NMTC) program, which provides tax incentives to promote business investment in low-income neighborhoods. To identify the program’s effects, I exploit a discontinuity in the rule determining the eligibility of census tracts for NMTC-subsidized investment. Using rich administrative data on ...