Main Street Tax Credit Program
The Main Street tax credit incentive program provides a Business & Occupation (B&O) or Public Utility tax (PUT) credit for private contributions given to eligible downtown organizations. Once your business’ donation request is approved by the Department of Revenue, you are eligible for a tax credit worth 75% of the contribution to your downtown revitalization organization. Designated Washington Main Street Communities are eligible to receive contributions through this state tax credit program.
Businesses statewide can also donate to the Main Street Trust Fund. In this case, the tax credit is worth 50% of your donation. In fact, a business can donate to both up to $250,000. What other program essentially lets you self direct your business taxes? Further, if your downtown organization is a 501(c)3 you may be eligible for a federal income tax deduction as a charitable contribution.
The Main Street Tax Credit Program is established in RCW 82.73.
The Basic Facts:
- Organizations must be officially designated a Washington Main Street Community by the Washington State Main Street Program (WSMSP) to be eligible to receive contributions through the Main Street Tax Credit Incentive Program (MSTCIP).
- Don’t forget that donating to the Main Street Trust Fund helps support revitalizing downtowns across the state! Building the capacity of the statewide program provides services to eligible downtown organizations.
How Do You Actually Get The Tax Credit?
- Businesses must be registered to file their state excise tax electronically.
- A donation request must be filled out and submitted online, but don’t worry – it’s easy and we’ve got step-by-step instructions on our website!
- The business must take the tax credit the following year the donation is made – and sorry, but the tax credit can’t be carried forward and there won’t be a refund for any credit above and beyond a business’ tax liability.