The Main Street Tax Credit Incentive Program nudges businesses into giving stimulus money to local businesses by offering B&O tax credits in return. In 2013, the program generated a high return on investment, including on Bainbridge Island. Contributions to the Bainbridge Main Street Program (through the Bainbridge Island Downtown Association) hit a new record of $110,000 according to BIDA’s Executive Director Andie Mackin. But, she said, the cap for our community is a little higher, $133,000, and she hopes the community will aim for that in 2014.
She encouraged participants to register for 2015 credits at the State DOR website. She said payment wouldn’t be due until the end of December, and participants can adjust the amount later in the year to reflect actual 2014 YTD sales. Statewide in 2013, for every $1 invested by the State (which totaled $160,000), the program generated an additional $101.
In Washington last year, the program sparked the creation of 432 new businesses, generated over $16 million in private investment and almost $20 million in public investment, and created 1,046 new jobs. Mackin encouraged interested businesses to hurry to register their donations so as to get the credits allocated here before donations in communities across the state reach the $1.5 million cap on tax incentive contributions.
There are 27 communities in Washington besides Bainbridge that are participating in the Main Street program. The State program reported that those communities came within $1,000 of reaching the statewide cap. Participating businesses get a tax credit for 75 percent of the donations they make to the Main Street program. They may also be eligible for deductions on their Federal taxes. A single business can donate up to $250,000.
Last year and the year before, the biggest contribution was $100,000 made to the Port Townsend Main Street Program. On Bainbridge, our City and three businesses—Kitsap Bank, Tim Ryan Construction, and Town & Country—made donations over $10,000 to the Main Street Program.
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Photo by Hairy Grumpy.