Developers eyeing Tacoma have until April 1 to apply for a chance to use part of Tacomas Commercial Revitalization Deduction (CRD) allocation – a move that could save builders a bundle.
Winning applicants will be able to use an accelerated depreciation schedule on a portion of their projects, 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.
To qualify, projects must be located in the Renewal Community Zone – an area that covers most of Tacomas downtown core, the port area, Upper Tacoma and a portion of the citys East Side.
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.
In 2002, the Department of Housing and Urban Development (HUD) named Tacoma one of 28 urban Renewal Communities across the U.S.
As part of that designation the city receives an annual $12 million CRD allocation that the State of Washington can award to development projects in Tacoma.
Theas Landing and Ted Brown Music Building won the first year’s CRD competition, receiving $10 million and $2 million allocations, respectively.
Interested developers can pick up CRD applications from the Tacoma Economic Development Department, Tacoma Municipal Building, 747 Market St., Room 900, between 8 a.m. and 5 p.m.
Developers may also request an application via e-mail at shart@cityoftacoma.org or by calling 253/591-5208. Applications are due by 5 p.m. on April 1.
The state of Washington will announce Tacomas winning projects by the end of June.
