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 was established in HB 1279 and is contracted out for management to the Washington Trust For Historic Preservation.
MSTCIP credit cap increases to $5M starting 10/1/2021!
Thanks to the tremendous advocacy efforts of local Main Street executive directors, new legislation passed increasing the MSTCIP state credit cap from the previous $2.5M to $5M starting in 2021. This increase will take effect this fall, leading to a one-time additional tax credit application opening at 8:00am on 10/1/2021. Any applications made after this opening must still be fulfilled before the Department of Revenue’s November 15th deadline and the credit were released for use in January 2022. More info found here!
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.