In 2005, the State of Washington passed legislation allowing businesses to earmark their state B&O tax dollars for communities with approved downtown revitalization programs. Experiene Chehalis was awarded the Main Street status in May 2014.
A look at the program
A tax credit equal to 75% of your contribution is available through the Washington State Department of Revenue’s Main Street tax credit program. The credit may be claimed in the calendar year immediately following the calendar year in which the credit was approved by the department and the contribution was made to the program. Your credit may not be carried over to subsequent years and no refund may be granted for your credit.
How it works
An example: a business contributes $10,000 to our Experience Chehalis Main Street program this year. The business will receive a $7,500 B&O tax credit to be used next year. The contribution can be made with a single payment or incremental payments throughout the calendar year. In addition, all or part of the contribution may qualify as a 501(c)(3) charitable deduction on the federal income tax return for this year. Check with your tax advisor for more information on this deduction.
Currently, $5 million in B&O tax credits are available statewide to eligible Main Street communities. Experience Chehalis can receive up to $213,333 in B&O tax contributions annually. The credits are on a first-come, first-serve basis for Main Street communities, so don’t delay.