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B & O Tax Credit Incentive Program is Good For Your Business

B & O Tax Credit Incentive Program Benefits Your Business and the Sumner Downtown Association.

There is a little know program that was created and passed through legislation in 2005 called the Main Street Tax Credit Incentive Program.  This program was designed so that organizations like the Sumner Downtown Association would have another source of financial support to ensure their objectives such as office support, promotions, economic development, historic preservation and events to draw in tourism, continue.

It's not just the Sumner Downtown Association who benefits.  Businesses paying the Business and Occupation Tax can take a tax credit (B & O Tax Credit or a Public Utility Tax) for contributions given to eligible downtown revitalization organizations such as the Sumner Downtown Association (SDA). 

Through this process, a portion of your tax dollars is refocused toward Sumner, supporting our local downtown organization and its activities.  Potential uses for the funds are:  Sumner's heritage parade float, mural restorations, hanging basket program, historical plaques and signage, beautification projects, heritage art, holiday lighting and more.  Up to 75% of your contribution to SDA in 2012 may be used against your 2013 B&O or PUT tax liability.  Additionally, a portion of your tax credit incentive program contribution to SDA may qualify as a deduction on your company's 2012 IRS tax return. 

To break this down more, if your check to SDA is $1000, then your 2013 B & O Tax Credit is $750. Your 2012 IRS Deduction may be up to $1000. It is recommended you consult your accountant to verify your business qualification.

SDA is eligible to receive up to $133,333.33 in tax credit contributions annually.  This is a time-bound opportunity, however.  There is a cap on the amount of credits available statewide each year and its based on a first come first serve process.  Commitments must be made through the Washington State Department of Revenue and contribution checks received by SDA on or before December 31, 2012.

So how can you participate to ensure your tax dollars are redirected back into your community or neighboring community?  First you must be registered to file your excise taxes electronically (known as E-Filing) with the Washington State Department of Revenue. If you are not presently set up for E-filing, please contact the SDA office at 253-720-9846 for a "How To" guide.

Next, go to the Department of Revenue website at http://dor.wa.gov/ and enter your E-File account.  You will be on your "My Account" page. Select "Credits and Tax Incentives" to the left. Click on "Apply for Main Street Credit."

Read through the "Before You Start" information and then click on "Get Started."  Using the scroll down list, select the Sumner Downtown Association as the organization to whom you will make your contribution.  Then click Next.  Type in your contribution amount and click Next.  Review the summary page - it will show your contribution amount and the amount of your tax credit.  If all shows correct, click Next.  Follow the agreement instructions on the next window and click Submit.  After receiving your approval, you must make your contribution directly to the Sumner Downtown Association on or before December 31, 2012.  Once you make your contribution, be sure to get your receipt from SDA and take your tax credit in 2013 and if qualified, your IRS Deduction for 2012.  Please contact Tiffany Volkman with the Department of Revenue with questions at 363-902-7126 or tiffanyv@dor.wa.gov.

Please remember, the benefits of the program to you may vary depending on the type of business, tax commitment and other factors. Interested contributors should contact their accountant to confirm the full extent of the tax benefit to your business.

The Sumner Downtown Association has found great success these past years thanks greatly to the B & O Tax Credit Incentive Program and those who have so graciously contributed.  We, simply put, would not be here without such support. If you are a business in Enumclaw, Bonney Lake, Orting, or even Puyallup, SDA can benefit (as can you) from your participation as well.

Please join this wonderful opportunity to keep tax dollars at home.  Should you have questions regarding this BLOG, please contact me at 253-720-9846.

 

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Laurie Miller December 03, 2012 at 11:12 PM
If you own a business, this is a win-win opportunity for you and the Sumner community. Please give this great consideration. There is still time to be a part of the B & O Tax Credit Incentive Program.

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