Tacoma developers invited to apply for $12 million in federal 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, 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 through the Community and Economic Development Department, 747 Market St., Room 900, from 8 a.m. to 5 p.m. Applications can also be requested through Debbie Bingham, debbie.bingham@cityoftacoma.org, (253) 591-5117. Applications are due by 5 p.m. on July 31.

The state of Washington will announce Tacoma’s winning projects in late September.