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Keep Your Tax Dollars Participate in the B&O Tax Credit Program "Support SDA's efforts
for downtown revitalization and historic preservation". MAIN STREET CREDIT - General Overview Starting January 1, 2006, businesses can apply electronically for a credit against the B&O tax and public utility tax equal to:
How does
a business request the credit? A business must be registered to file
its state excise tax returns electronically in order to take advantage of the
tax credit and may do so any time prior to applying for the credit. Go to the
Dept of Revenue’s website
www.dor.wa.gov and click on “E-file and Online Services”. Once a business
is registered, they will be able to request the tax credit electronically
through the DOR website. Keep in mind the tax credit request must be approved
prior to making a contribution to SDA. Do businesses get to take the tax credit in the same year that it is approved? No, a business may use the approved credit by reporting it on any excise tax returns filed during the calendar year following the year in which it was approved and contributed. However, in order for a business to use the full amount of the tax credit they are taking, the must have accrued a State B&O tax/PUT liability equal to, or exceeding the amount of the credit. A credit cannot be carried forward from year-to-year nor can a credit be refunded if the B&O/PUT liability is not equal to, or great than, the credit amount approved for use in that year. Does a business need to reapply for the tax credit each year? Yes. Applications will be accepted on a first come basis beginning January 1 of each year. Can a business spread out their contributions throughout the year? Yes, as long as the entire contribution is given to the designated organization within the calendar year in which is was approved, and they receive a receipt each time they make a contribution “installment”. Can businesses outside SDA’s primary focus area take advantage of the tax credit? Yes, if they are approved for program. If SDA has a 501(c)3 tax status, can a business making a tax credit contribution also “write off” the contribution, or a portion of it, as a charitable contribution deduction on their federal tax return? The answer will vary depending on the type of business entity making the contribution. Information is included in federal tax return filing instructions as well as publications available from the IRS website (www.irs.gov). Check with your accountant or an IRS representative to get a definitive answer. IT’S EASY TO PARTICIPATE & SIMPLE TO REGISTER & BE APPROVED Last year, legislation was passed in the State of Washington allowing businesses to earmark their state B&O tax dollars for their communities. The Sumner Downtown Association has been approved by the Dept of Revenue as an eligible designee of the B&O Tax Credit Program. Your contribution to the SDA through the Main Street Tax Incentive Program is matched 3 times by your credits, effectively making your contribution to your local community 4 times the amount, keeping those dollars at home supporting local programs and projects. For example, if your business contributed $10,000 to the Sumner Downtown Association in 2007, $2,500 is a contribution and you would be eligible to receive $7,500 back in the form of a credit on your 2008 B&O tax. Through this program, SDA has been approved and is eligible to receive up to $100,000 in contributions this year. In 2007, there is a $1.5 million cap in credits statewide. SIGN UP NOW! If a local business registers this November, receives approval and makes a donation to SDA by December 31, 2007, 75% of their donation can be deducted from their first excise tax return in 2008. WHAT WILL THE MONEY BE USED FOR? SDA will utilize these donations to further development and implementation of a historic preservation ordinance and formation of a CLG, create tax incentives, grant programs and low interest loan pools for private reinvestment in downtown, business education and recruitment as part of downtown revitalization, and hire additional staff to continue existing downtown events and projects. STEPS TO REGISTER ONLINE
Join us in this exciting program and make your contribution to the Sumner Downtown Association Program. It must be received no later than December 31st, 2007 for the 2008 tax credits. Please check with your accountant — depending on your type of business, your contribution may also be tax-deductible on your Federal taxes in 2007. However, please note: these funds are on a first come, first served basis statewide. The earlier you commit, the greater change Sumner has to benefit form this remarkable opportunity, so please pledge as early in the year as possible. For more information, contact the Sumner Downtown Association or the Department of Revenue. We thank you for your support!
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