The Nebraska Department of Economic Development (DED) has awarded an additional $25,000 in Community Development Assistance Act (CDAA) tax credits to the City of Elgin’s Community Swimming Pool Project. This award was made in addition to the original $25,000 in tax credits awarded to the City in December 2015.
The City of Elgin will use the additional $25,000 in tax credits to renovate the community recreation/pool facility to meet current ADA accessibility standards. Renovation of the more than 50-year-old pool will allow for an expansion of recreational and educational programs. In November 2015, a $500,000 bond issue was approved by Elgin voters with 94% approval to help fund the repairs estimated at $1.541 million.
Created in 1985, CDAA empowers the Nebraska Department of Economic Development to distribute a 40 percent state tax credit to businesses, corporations, insurance firms, financial institutions, or individuals that make eligible contributions of cash, real estate, and services or materials to approved community betterment projects in areas identified as economically distressed. Every dollar contributed to a project results in a $0.40 tax credit return thereby reducing an individual’s or firm’s state tax liability.
Projects that qualify for the tax credit program include: employment training, human and medical services, physical facility and neighborhood development services, recreational and educational activities, and crime prevention.
In FY2015-16, $275,000 has been awarded to community betterment projects with a total of $300,000 in tax credits allocated. This award to Elgin fully allocates all tax credits for the current fiscal year. There is a total of $225,000 in available tax credits allocated for FY2016-17 starting July 1, 2016.