Developers can apply for $12 million in tax deductions

Developers eyeing projects in Tacoma can 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 and an increased ability to make a project “pencil.”

The financial relief comes early in the process when projects incur the most expenses.

Tacoma receives the CRD allocation annually from the Department of Housing and Urban Development after being named one of 28 national urban Renewal Communities in 2002.

Thea’s Landing, Ted Brown Music Building, Albers Mill, Marriott Courtyard, Rainier Pacific and Fraternity Hall are all projects that have been awarded a CRD allocation.

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 or 253/ 591-5208. Applications are due by 5 p.m., on Monday, April 12.
The state of Washington will announce Tacoma’s winning projects by early July 2004.