The CMPA board passed the recommendation to use New Market Tax Credits as a funding mechanism for the Maritime Museum. Today the Pensacola City Council will have a presentation of the funding plan.
There is a worry that the Council and city staff will drag their feet on this—as they do with so many other issues. There is a timeline that needs to be followed with these tax credits.
I spoke with Ed Gray this morning. The funds from the credits must be 95 percent expended within one year of being placed in the project fund to qualify for the “safe harbor” status. The Safe Harbor status means the IRS can’t come back and question the qualifications of the project.
And though it will be nearly impossible to spend all the funds for construction within 12 months, the City Council, CMPA and UWF need to be as close to that timeline as possible.