State awards $12 million in Commercial Revitalization Deductions

The Washington State Department of Community, Trade and Economic Development accepted recommendations from the City of Tacoma and the Tacoma Community Redevelopment Authority for $12 million in Commercial Revitalization Deductions (CRD) this year. The CRDs were awarded to three commercial building projects in Tacoma.
Each year projects compete for $12 million in CRD allocations. This year, four projects applied for funding. The state of Washington awarded the allocations to:

– TRAP Enterprises, LLP, building structures: $7,000,000

– Foss Investors I, LLC, office building: $3,000,000

– 1123 Pacific Partners, LLC, office building: $2,000,000

The benefits to these projects include a reduced federal tax bill and an increased ability to make projects “pencil” by giving owners financial relief early in the projects when they incur the most expenses.

Tacoma is the only place in Puget Sound — and one of only 28 urban communities around the country — to maintain a U.S. Department of Housing and Urban Development Renewal Community designation. With the designation, Tacoma businesses and developers within the area are eligible for a variety of federal tax credits and deductions.

Commercial property owners who are rehabilitating or developing their property can apply for a portion of Tacoma’s $12 million Commercial Revitalization Deduction allocation. For more information, contact Julie Scott in the City’s Community and Economic Development Department, at (253) 591-5117.