$20,000 Question in Downtown Ellensburg
Downtown Ellensburg Association leaders are happy if a little perplexed this summer. Local revitalization efforts will benefit from a recent pledge of $20,000 for the organization, the problem, nobody seems to know who the generous benefactor is.
Recently passed legislation allows businesses that make a contribution to local downtown revitalization programs like the Ellensburg Downtown Association to receive a tax credit of 75% of their donation or up to $100,000 from their B&O tax liability. “This has been a great tool” according to Association President Gary Jones, a commercial banker with Sterling Savings Bank which has donated $25,000 each of the last two years. “The opportunity for a business to invest money that would otherwise be going to the state coffers in their own community and receive a tax credit for that donation just seems to good to pass up.”
The Association’s Executive Director, Timothy Bishop agrees. “By taking advantage of the B&O tax credit and investing these funds in the revitalization of Downtown we’re able to strengthen the market place where they’re doing business.” Statewide this tax credit is an important tool to help communities like Ellensburg leverage the resources to revitalize our downtowns, and for businesses it’s a great chance to direct their tax dollars in a way that they can see a real impact at the local level.”
The B&O Tax credit was established in the 2005 legislative session as an incentive to assist communities trying to revitalize their downtowns and allows businesses to take up to $100,000 in tax credits in return for their contribution to a locally designated revitalization program
The association has met with several area businesses to promote the Main Street B&O Tax Credit and in late June received word from the Department of Revenue that they had approved a contribution of $20,000 for the tax credit. The catch, Department of Revenue can’t release a businesses’ financial information so they can’t say who made the pledge.
Ellensburg Downtown Association leaders aren’t worried though. “The way the main Street Tax Credit is set up businesses have to get approval for the credit before making the donation and have until the end of the calendar year to make the donation before receiving the credit” according to Jones “This is a sizeable contribution though and I think we just really want to know who to thank. However since the Association doesn’t see too many checks for this amount, it’ll be easy to spot in the mail.”
For more information on the Main Street Business and Occupation Tax Credit contact the Ellensburg Downtown Association at 509-982-6246 or email info@ellensburgdowtntown.org
For an overview of the Main Street B&O Tax credit click follow this link http://dor.wa.gov/Content/FindTaxesAndRates/TaxIncentives/Def_Credits.aspx#Main
For a short FAQ Sheet follow this link http://www.cted.wa.gov/_CTED/documents/ID_2380_Publications.pdf
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