Community Renewal Good Stories - Tacoma

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Tacoma Dance Club Bops to the Beat of RC Tax Savings

Tacoma, Washington, RC

No, it is not a gimmick or an infomercial.... There really is money out there waiting to be claimed by local merchants in the form of tax credits. That is the message the Tacoma Economic Development Department is sending to businesses in the 3-year-old Tacoma, Washington, RC.

The Loft, a dance club on South 21st Street and Pacific Avenue, has gotten the message loud and clear and is taking advantage of the RC wage credit. "It's made a big difference for us.... You take it right off the bottom line," said Jordan Snyder, The Loft's general manager. "It's a no-brainer." Because 9 of its 30 workers live within the RC's boundaries, the club saved $13,500 in taxes. That is a $1,500 tax credit per employee, the maximum allowed each year.

Shari Hart, who coordinates the RC program, makes frequent pitches to the Downtown Merchants Group and others interested in learning about the variety of tax breaks and development opportunities available in the RC. As she promotes the RC, Hart reminds business owners to use HUD's address locator at www.hud.gov/crlocator to determine whether their business is located and the employees reside in the Tacoma RC.

Tacoma is the only place on the Puget Sound-and one of only 28 urban communities around the country-to receive a HUD RC designation in 2002. The Tacoma RC covers most of the downtown core, the port area, upper Tacoma, and a portion of the city's east side. The RC replaces Tacoma's former Enterprise Community designation and is slated to last through December 2009.

In addition to the wage credit, Tacoma businesses can take advantage of the RC designation through CRD, increased IRS Section 179 deductions, and zero-percent capital gains rates when they sell qualified property.

For more information on the programs of the Tacoma RC, contact Renewal Community Coordinator Debbie Bingham at (253) 591-5117.