B&O Tax Program

Direct your tax dollars back into your community

What is the Main Street Tax Credit Incentive Program?

We’re excited to let you know the Washington State Legislature has provided a special way for you to support the revitalization of Downtown Puyallup!  

In 2005, legislation was passed to create the “Main Street Tax Credit Incentive Program.”  Through the program, businesses are eligible to take a Business and Occupation (B&O) tax credit or a Public Utility (PUT) tax credit for contributions given to Puyallup Main Street Association (PMSA).  In effect, this refocuses a portion of your tax dollars towards supporting our local downtown organization and its activities.  PMSA is eligible to receive up to $133,333 in tax credit contributions annually.  However, time is of the essence – there is a cap on the amount of credits available statewide each year.

The Main Street Tax Credit Incentive Program, By the Numbers

  • 75% of your contribution to the PMSA in 2019 may be used against your 2020 B&O or PUT tax liability.
  • The full amount (100%) of your contribution to the PMSA may qualify as a 501(c)3 charitable deduction on your company’s 2019 IRS tax return.

A simple example of how the Main Street tax incentive works:

Your business contributes $10,000 to our local Puyallup Main Street Association program this year and you will receive a $7,500 B&O tax credit to be used next year. You can contribute any part up to the full amount of your annual B&O tax obligation with a single payment or incremental payments throughout the calendar year.

In 2019, $2.4 million in tax credits is available statewide. PMSA can receive up to $133,333 in contributions. Approvals are given each year on a first-come, first-served basis as of January 1st. And, because the Puyallup Main Street Association is a 501(c) 3 non-profit organization, you may be able to deduct the contribution as a charitable donation. Check with your tax advisor for more information about this.

Why Make a Contribution to the Puyallup Main Street Association

 

We are currently gathering ideas as to where we can direct monies for next year and we are open to any and all suggestions. In years past some of the monies granted to us went to building facade improvements, etc.

We encourage you to consider investing a portion of your B&O taxes in your downtown community!

How the Program Works

You must register online and be an e-filer with the Washington State Department of Revenue to take advantage of this opportunity.  Tax credits are available on a first come, first serve basis, so please sign up as early in the year as possible.  Here are the steps:

  1. Go to the Department of Revenue website at http://dor.wa.gov/ and enter your e-file account. Click “List of Services.”
  2. Click on “Apply for Main Street Tax Credit.”
  3. Click on “Get Started.”
  4. Using the scroll down list, select “Puyallup Main Street Association” as the organization you will make a contribution to.  Click on “Next.”
  5. Type in your contribution amount and click on “Next.”
  6. Review the summary page – it will show your contribution amount and the amount of your B&O Tax Credit.  If all is correct, click on “Submit.”
  7. Approval is almost instantaneous – you will see confirmation of both your contribution and your tax credit amount.
  8. After receiving approval, you must make your contribution directly to the PMSA anytime on, or before, December 31, 2019. (or submit your contribution electronically NOW, by clicking the “donate” button below.)
  9. Once you make your contribution, be sure to get a receipt from PMSA and to take your tax credit in 2019!

Please Note: Interested contributors should contact their accountants to confirm the full extent of these tax benefits as they may vary depending on the type of business, tax commitment, and other factors.

Send your donation electronically through our PayPal account. You can use the button below to make a donation of any amount.

Thank you to our 2018 B&O Tax Contributors

furniture and mattress-wo_dropshadow.psd

     BO2     columbia-bank-stackedheritagebanklogo

PSE logo                     taylor-made

Yasmin L Caldwell, CPA, PS Inc.           Janice Gogue Salas