$12 million tax deductions available for Tacoma developers

Developers eyeing projects in Tacoma are invited to apply for Tacoma’s Commercial Revitalization Deduction (CRD) allocation. The $12 million allocation of federal tax deductions will be distributed among projects located in the Renewal Community Zone—an area that covers most of Tacoma’s downtown core, the Port area, Upper Tacoma and a portion of the city’s East side.

To qualify, projects must be new construction or a substantially rehabilitated structure and must create space for new jobs. The maximum allocation per project is $10 million. Some projects may be eligible for an accelerated depreciation schedule, resulting in a reduced federal tax bill. The financial benefits come early in the development process when projects incur the most expenses which increases likelihood of making a project “pencil.”

Tacoma receives the CRD allocation annually from the Department of Housing and Urban Development. It is an outcome of being named one of 28 national urban Renewal Communities in 2002. Thea’s Landing, Ted Brown Music Building, Albers Mill, Marriot Courtyard, Rainier Pacific, Fraternity Hall and the Shuffleboard Building are all projects that have been awarded CRD allocations. Previous CRD allocations have ranged from $450,000 to $10 million.

Applications are available at the Tacoma Economic Development Department, Municipal Building, 747 Market St., Room 900, from 8 a.m. to 5 p.m. Applications can also be requested from shart@cityoftacoma.org or (253) 591-5208. Applications are due by 5 p.m. Nov. 10.

The state of Washington will announce Tacoma’s winning projects by the end of this year.