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Deadline Nears for Revitalization Tax Deductions

TACOMA, WA-Developers planning projects in Tacoma have until Monday to apply for several million in federal tax deductions that will be awarded in December.

By Brian K. Miller | Updated on September 21, 2004

TACOMA, WA-Developers with planned projects in certain areas of the city here have until Monday to apply for several million dollars in revitalization tax deductions that weren’t sought in this year’s first round of applications. The Commercial Revitalization Deduction program was launched in 2002 after HUD named the city one of 28 national Renewal Communities. The city receives a $12-million allocation annually. Earlier this year, two projects were awarded CRD allocations totaling nearly $7.4 million, leaving approximately $4.7 million in CRD allocations allowed for the remainder of this year.To qualify, projects must be new construction or a substantially rehabilitated structure and must create space conducive to creating new jobs. As well, the projects must be located in the Renewal Community Zone–an area that covers most of the city’s Downtown core, the Port area, Upper Tacoma and a portion of the city’s East Side.Winning projects are allowed an accelerated depreciation schedule, resulting in a reduced federal tax bill and an increased ability to make a project “pencil” by giving owners financial relief early in the project when they incur the most expenses. The maximum allocation per project is $10 million, and projects may apply more than once to reach that total. The State of Washington is expected to announce Tacoma’s winning projects in early December.

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