[StBernard] Governor Blanco awards 60 Economic Development projects more than $44 million in Commercial Revitali

[Westley Annis]

Governor Blanco awards 60 Economic Development projects more than $44 million in Commercial Revitalization Deductions

BATON ROUGE - Governor Kathleen Babineaux Blanco today announced 2006 Renewal Community Commercial Revitalization Deductions Allocations for all four of Louisiana's Renewal Communities. Every year until 2009, the businesses in each Renewal Community Area (RC) compete for $12 Million in CRD Allocations, $48 Million statewide. 

"Renewal Communities were designed to attract businesses to high poverty, low population areas," Governor Blanco said. "This is proof businesses are moving in and expanding. These 2006 RC projects will create or retain 3764 jobs in the Renewal Community areas. This is great news for our communities." 

This year, 60 projects applied for the CRD Allocations statewide. Click here <http://www.gov.state.la.us/assets/docs/Renewal%20Community%20Awards.PDF>  to view the list of projects ! Governor Blanco has awarded the allocations to. 

The benefits to these projects include a reduced federal tax bill and an increased ability to make their projects "pencil" by giving owners financial relief early in the projects when they incur the most expenses. 

"We are excited to be able to 'max out' in our Renewal Community areas", said State Director Leslie Lee, "Orleans/Jefferson fell short in 2006 understandably but there is little doubt that the region will be 'maxed out' in 2007."

Nationwide there are 28 Urban RCs and 12 Rural RCs; of which, Louisiana has 2 of each who maintain a U.S. Department of Housing and Urban Development (HUD) Renewal Community (RC) designation. With the designation, Louisiana businesses and developers within the RC area are eligible for a variety of federal tax credits and deductions through 2009. One of those is the Commercial Revitalization Deduction (CRD) allocation which allows property owners to use an! accelerated depreciation schedule on their projects. These deductions serve as a catalyst for revitalizing distressed neighborhoods.

In addition to the CRD allocation available to property owners and developers, Louisiana businesses can also take advantage of the RC designation through other tax credits and deductions, including the RC Wage Credit, Increased Section 179 Deduction and Zero Percent Capital Gains. Unlike the CRD, these business tax incentives do not require an application. Instead, businesses can file the proper forms directly with the Internal Revenue Service. 

The RC zones cover most of Louisiana's Northern and Central parishes and 20 census tracts in the Orleans/Jefferson parishes. The RC designation is currently slated to last until Dec. 31, 2009. "We are currently pursuing federal legislation to expand current RC boundaries and extend the deadline to 2015," explains Governor Blanco. HUD ranked RC applicants according to their poverty, unemployment and low-income household rates on the 1990 Census. 
Louisiana businesses and developers - both inside and outside the RC zone - can take advantage of more distressed community tax incentives than just the ones mentioned here. For more information, check HUD's Web site at www.hud.gov/cr <http://www.hud.gov/cr>  or in IRS Publication 954 at www.irs.gov <http://www.irs.gov> . 

Commercial property owners, who are rehabilitating or developing their property, can apply for a portion of Louisiana's Commercial Revitalization Deduction allocation. To receive an application for the 2007 CRD Round, or for questions regarding the CRD or other Renewal Community tax incentives, please go to our state website www.renewalla.com <http://keelson.eatel.net/webs!  ites/la.gov/action.cfm?md=communication&task=addClick&msg_ID=3227&ID=d  Qi%5Ce%5Fi%2CnonK&redirect=http://www.renewalla.com>  or contact my Renewal Community Director, Leslie Lee (225) 342- 6201. 

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