Open Access. Powered by Scholars. Published by Universities.®

Urban Studies and Planning Commons

Open Access. Powered by Scholars. Published by Universities.®

Matthew Freedman

Tax credit

Articles 1 - 1 of 1

Full-Text Articles in Urban Studies and Planning

Teaching New Markets Old Tricks: The Effects Of Subsidized Investment On Low-Income Neighborhoods, Matthew Freedman Nov 2012

Teaching New Markets Old Tricks: The Effects Of Subsidized Investment On Low-Income Neighborhoods, Matthew Freedman

Matthew Freedman

This paper examines the effects of investment subsidized by the federal government’s New Markets Tax Credit (NMTC) program, which provides tax incentives to encourage private investment in low-income neighborhoods. I identify the impacts of the program by taking advantage of a discontinuity in the rule determining the eligibility of census tracts for NMTC-subsidized investment. Using this discontinuity as a source of quasi-experimental variation in commercial development across tracts, I find that subsidized investment has modest positive effects on neighborhood conditions in low-income communities. Though spillovers appear to be small and crowd out incomplete, the results suggest that some of ...