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Property located in any one of the 100+ neighborhoods of the Atlanta Renewal Community is eligible for a Commercial Revitalization Deduction (CRD).
The CRD is deducted from a business' income before calculating federal income tax liability. With a CRD, the property owner can deduct a portion of the costs of acquisition, substantial rehabilitation and new construction over a shorter period than permitted under standard depreciation rules.
Who's Eligible:
- Investors
- Developers
- Business owners specializing in redeveloping abandoned and under-utilized buildings or new construction projects
Specificially, this competitive tax deduction allows a property owner to EITHER deduct half of eligible building expenses during the year that the building is placed in service OR pro rate the same expense over a 10-year period.
Additional Benefits:
If a project is in its initial phase and the owner can demonstrate having site control, financing and a solid business plan -- the property owner can apply for a "carry-forward." This tax provision allows potential projects to take up to 24 months to be completed.
While the Georgia Department of Community Affairs (DCA) administers the CRD Program, the Atlanta Renewal Community Coordinating Responsible Authority (ACoRA) provides assistance with the application process for the CRD. There is no cost for this service; however, owners and investors should not rely solely on the technical assistance provided. It is best to consult a tax professional while preparing this application.
Applications are available online at www.dca.state.ga.us under "Tax Credits." Applications are due each year on October 31, by 4pm at the ACoRA office. CRD allocation awards are announced by the Georgia Department of Community Affairs each December.
The Atlanta Renewal Community (RC) includes more than 100 neighborhoods. Visit www.hud.gov/crlocator to determine if your property is located in the Renewal Community.
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