Developers Urged to Participate in Federal Tax Deduction Program

TACOMA, CA-According to the City of Tacoma, developers who are considering building new projects in the city can apply for $12 million in federal tax deductions.

In 2002, the Department of Housing and Urban Development named Tacoma one of 28 urban Renewal Communities across the United States. As a result, the city receives an annual $12 million “Commercial Revitalization Deduction” (CRD) allocation that the State of Washington can award to development projects in Tacoma.

Developers have until April 1 to apply for a chance to use part of Tacoma’s CRD allocation, which the city says could save them “a bundle.” The winning applicants will be able to use an accelerated depreciation schedule on a portion of their project. As a result, they will have a reduced federal tax bill and an increased ability to make a project “pencil.”