$12 million tax break available for Tacoma developers

Developers who are looking for a competitive advantage can apply for Tacoma’s Commercial Revitalization Deduction (CRD) allocation. The City will grant the $12 million allocation of federal tax deductions to projects located in the Renewal Community Zone, which includes most of Tacoma’s downtown core, the Port area, Upper Tacoma and a portion of the city’s East side.

New construction and substantially rehabilitated projects that creates space for new jobs qualify for the tax credit. Any single project can qualify for up to $10 million for the credit, which can result in an accelerated depreciation schedule, and therefore, a lower tax bill. The financial relief comes early in the construction process when projects have higher expenses. As one of the nation’s urban Renewal Communities, Tacoma receives the CRD allocation annually from the Department of Housing and Urban Development. Unless Congress extends it, this is the final year for the program, so buildings have to be in service by the end of 2010.

Pacific Plaza, Rainier Connect, Thea’s Landing, Ted Brown Music Building, Albers Mill, Marriott Courtyard, Rainier Pacific, Fraternity Hall, Shuffleboard building, Atrium Court, Bridge Lofts, Carlile Transportation Systems freight facility, McFarland Cascade shipping center, Sun-In trans-load facility, First Swedish Baptist Church building, the Kress-Payless, Ford building and auditorium and the Foss Landing building are all projects that have been awarded a CRD allocation.

Applications are available beginning July 6 and are due by 5 p.m. Aug. 17 and are available at through the Community and Economic Development Department, 747 Market St., Room 900, from 8 a.m. to 5 p.m. Or contact Debbie Bingham at (253) 591-5117 or debbie.bingham@cityoftacoma.org.