Update!!

Thanks to the tremendous advocacy efforts of local Main Street organizations, new legislation passed increasing the MSTCIP state credit cap from the previous $2.5M to $5M starting in 2021. 

How does the MSTCIP work? 

1. A business or entity that pays Washington State B&O or PUT decides to donate to a Main Street Community.
2. They apply to contribute online through the Department of Revenue's portal.
3. The application is automatically approved as long as there is enough credit available to match 75% of their pledged contribution.
4. They donate to the Main Street on a schedule that works for both parties before November 15.
5. The Main Street Reports the contribution fulfilled.
6. The following year, the business receives their tax credit.

Here is a simple example of how the Main Street Tax incentive works: if your business contributes $10,000 to Historic Downtown Prosser in 2023 utilizing this tax incentive, you will receive a $7,500 credit on your B&O Tax liability in 2024.

How do I participate?

1. Sign up to e-file with the Washington State Department of Revenue here.
2. From there, click on Doing Business, then My Account, and Apply for Main Street Tax Credit.
3. Select Historic Downtown Prosser Association as the recipient and enter your contribution amount.
4. Write a check in the amount of your contribution to Historic Downtown Prosser in full or in payments. All checks must be received no later than November 15, 2023.

NOTE: The tax credit request must be approved prior to making a contribution to a designated organization. Businesses applying for the credit must be signed up to file electronically with the Department of Revenue. Once a business is registered to file electronically, it can logon to its E-file account and click on the Main Street Credit link. The business only needs to know the organization it intends to contribute to and how much it intends to contribute to apply for the program. The organization (recipient) is the Historic Downtown Prosser Association. The application is simply a matter of inputting this information. The credit may only 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 or the Main Street Trust Fund. Credits may not be carried over to subsequent years. No refunds may be granted for credits.

Part of the contribution may qualify as a 501(c)(3) charitable deduction on your federal tax return.