How To Apply For Credit

The Main Street Tax

Credit Incentive Program

Exciting Legislation from Olympia

That gives YOU the choice

Where your B&O tax dollars will be spent... 

Right Here In Chelan!

Click Here to see the list of Chelan area businesses who have already received these credits! 

Main Street Credit
Starting January 1, 2006, businesses were able to apply electronically for a credit against the B&O tax and public utility tax equal to:

  • 75% of approved contributions to designated revitalization programs, or
  • 50% of approved contributions to the Main Street Trust Fund.

The tax credit request must be approved prior to making a contribution to a designated organization such as the HDCA (Historic Downtown Chelan Association). Businesses applying for the credit must be signed up to file electronically (E-file) with the Department of Revenue. Once a business is registered to file electronically, it can log on 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 (e.g., HDCA) and how much it intends to contribute to apply for the program. 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 (e.g., HDCA). Credits may not be carried over to subsequent years. No refunds may be granted for credits.

Review the 3 easy steps below to learn more about this beneficial program (also known as the B&O Tax Credit).

STEP 1:

If you are interested in donating and receiving these credits, please click below for links to WA State ChooseWashington.com web site pages.  If you have any questions, please call the HDCA office at (509) 682-4322.

How to Apply For Credits    Frequently Asked Questions    Legislation Overview

STEP 2:   

Choose an eligible downtown revitalization organization (Historic Downtown Chelan Association qualifies) and log onto your DOR account to apply.  After you receive approval, you are ready for step 3.                     

Department of Revenue Credits Page/Overview 

Log into WA Department of Revenue site 

STEP 3:

After you receive DOR approval, you can write a check in the amount approved to the "Historic Downtown Chelan Association" (or "HDCA").

Mailing address: PO Box 3071, Chelan WA 98816

Donation to the HDCA must be made by 12/31/10 to receive 2011 credits.

Donations to Historic Downtown Chelan Association are NOT limited just to businesses in the city of Chelan.  Our legislature knows that a strong downtown core helps all of the companies in a region. 

  • $1.5 million in credits— total available statewide
  • $100,000 in credits maximum per community
  • The Historic Downtown Chelan Association can actually receive annually up to $133,333 in donations through this program
  • Receiving organization must be 501-C3 or 501-C6 —focused on downtown revitalization (Historic Downtown Chelan Association qualifies)
  • Must be pre-approved by WA Dept. of Revenue. 
  • 75% of the donation is your B&O tax credit to be used in the following year
  • 100% of your donation can be claimed on your federal return as a charitable contribution in the year of the donation **
  • Companies must file in electronic format

Contact HDCA office at 682-4322 on how all concerned businesses can participate and benefit.

Examples:

 

If your check is in the following amount: 

Historic Downtown  Chelan Assoc. receives:

 

 B&O tax credit in 2011:

Your initial out of pocket expense:

Amount that may be claimed as a charitable deduction in 2010**:

**Amt. your deduction reduces your federal return:

 

$ 1,000

$ 1,000

$ 750

$ 250

 $ 1000

$    **

$ 2,500

$ 2,500

$ 1875

$ 6255

 $ 2,500

$    **

$10,000

$10,000

$ 7,500

$ 2,500

 $ 10,000

$    **

$50,000

$50,000

 $ 37,500

$ 12,500

 $50,000

$    **

**Please discuss with your tax advisor - amounts vary from business to business.