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 for the same 75% 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 Incentive Program is established in RCW 82.73. For more information about the program, please view the Main Street Tax Credit brochure in English and Spanish, the Main Street Tax Credit FAQ, and the Step-by-Step Guide to Applying from the Department of Revenue:
MSTCIP receives new Q3 credit cap starting 10/1/2024!
With HB 2306 signed into law, the individual Main Street Community tax credit cap will increase to $250K beginning October 1st (Q4) of the calendar year, assuming the state annual cap of $5M has not been reached by that date.
MSTCIP credit cap increased to $5M on 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.
Further questions?
For more information on the Main Street Tax Credit Incentive Program please reach out to Main Street Specialist Jonelle McCoy at 509-202-4299 or by email.
For more information on the application process through the Department of Revenue website please reach out to Senior Excise Tax Examiner Chase Johnson at 360-705-6066 or by email.