Main Street Tax Credit Incentive Program
by Kayla Luttrell, CPA
The Main Street Tax Credit Incentive Program is a Washington State program that provides Business and Occupation (B&O) tax credits to businesses that contribute to eligible organizations, with a mission to revitalize downtowns across our great state. Data shows that the communities participating in the Main Street program have four times the average revenue growth and more than 30% higher job growth than other communities in the state.
The Main Street Tax Credit is 75% of your business’s total donation. To use the full amount of the tax credit, you must have accrued a state B&O tax equal to or exceeding the amount of the credit. The credit amount can only be used in the year it is approved, which means you’ll need to reapply each year. The credit can’t be carried forward from year-to-year or refunded if you don’t have enough B&O tax accrued.
In addition to the B&O tax credit perk, you can also deduct 100% of the contribution on your Federal income tax return, making it a great opportunity to save tax and invest in your local community.
There are two Main Street accredited organizations in Whatcom and Skagit county. In Whatcom county, your contribution must be made to Downtown Bellingham Partnership. In Skagit county, your contribution must be made to Mount Vernon Downtown Association.
Visit the Washington Trust for Historic Preservation website for a full list of accredited organizations across the State. There are state caps on the Main Street Tax Credit, so make sure to get your application in early!
How to Apply
- Send a donation pledge form to the eligible organization of your choice.
- Request your credit only at www.dor.wa.gov between January 12 and 31. Note that you DO need to file your excise tax return online in order to claim the credit.
- Make the contribution directly to the organization you made your pledge to by November 15, 2021. As long as the entire contribution is given to the organization by November 15th, you can make as many installments as you would like!
- Take the tax credit in 2022!
If you have questions about the Main Street Tax Credit or are interested in learning more about it, please contact us today.
Call us at (360) 734-4280 or fill out the form below and we'll contact you to discuss your specific situation.
Kayla Luttrell, CPA
Kayla Luttrell joined Larson Gross in 2017. She specializes in serving owner-operated businesses with their tax planning and preparation needs.