© 2019 by Waterville Main Street Association

B&O Tax Credit Incentive Program

In 2018 $2.5 million in tax credits is available statewide through the Main Street Tax Credit Incentive Program – and the Waterville Main Street Association can receive up to $98,039.21 total in contributions. Approvals are given each year on a FIRST-COME, FIRST-SERVED bases. The window to contribute opens Monday, January 8th and ends March 15th. Come April 1st, if the state cap has not been met, donors can make additional applications to contribute up to an eligible organizations’ individual cap of $133,333.33.

In effect, this program refocuses a portion of B&O taxes to eligible downtown revitalization organizations, which Waterville Main Street Association is one of. Any business who pays B&O tax in the state of Washington is eligible to participate, no matter where the business is located, i.e. a business in Spokane can contribute to the Waterville Main Street Association.

The Basic Facts:

  • Businesses who wish to donate must be registered to file their state excise tax electronically

  • A donation request must be filled out and submitted online through the Department of Revenue website: here

  • The donation can be spread out throughout the calendar year and must be paid in full by November 15th, but pledge early to guarantee the donation is eligible.

  • Waterville Main Street Association can receive donations totaling up to $133,333.33 per calendar year

  • All payments must be received by the Waterville Main Street Association by November 15, 2018.

  • The contributing business must take the tax credit the following year the donation is made and the tax credit cannot be carried forward.

 

How does it work?

If your business contributes $1,000 to the WMA in 2018 utilizing this tax incentive, you will receive a $750 credit on your B&O Tax liability in 2019. Because the WMA is a 501(c)3, the remaining $250 may possibly be claimed as a charitable contribution on your 2018 tax return. If your donation exceeds your liability, you will receive a credit equal to 75% of your total liability.

How do I participate?

  1. Sign into your e-file account at http://dor.wa.gov

  2. Click Credits & Tax Incentives in the left column

  3. Click Apple for Main Street Tax Credit

  4. Click Continue with Application

  5. Scroll the list and select Waterville Main Street Association and click Next

  6. Enter the full amount of your contribution and click Next

  7. Review the summary page and click Submit

  8. You will receive a thank you notice. Print your receipt

  9. You will receive a confirmation of your registration from the Department of Revenue within 45 days.

  10. Write a check in the total amount of your contribution to Waterville Main Street Association. All checks must be received no later than November 15, 2018.

B&O Tax Credit Example