The Basics:
How to Participate
& Tax Credit Amounts
Main Street
TAX CREDIT INCENTIVE PROGRAM
THE BASICS:
Keeping your state B&O and Public Utility Taxes local!
The Main Street Tax Credit Incentive Program (MSTCIP) provides a Business & Occupation (B&O) or Public Utility tax (PUT) credit for private contributions given to eligible downtown organizations, like Stevenson Downtown Association.
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Eligible community organizations – like Stevenson Downtown Association -– can receive contributions totaling up to $133,333.33 per calendar year through the MSTCIP.
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In return for a contribution, businesses earn a 75% state B&O tax credit on that amount, essentially re-directing their taxes locally.
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Businesses must be registered to file their state excise tax electronically in order to participate.
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A pledge to contribute must be submitted online through the Department of Revenue website, with the Stevenson Downtown Association selected as the credited community.
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The pledged contribution can be spread out throughout the calendar year, but the full amount must be received by the Stevenson Downtown Association online or with a check by November 1, 2021.
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The business must take the tax credit the following year the donation is made – the tax credit cannot be carried forward.
TAX CREDIT EXAMPLES
$1,000 contribution
= $750 tax credit
= $250 out of pocket donation*
= $1,000 that supports downtown revitalization
$2,500 contribution
= $1,875 tax credit
= $625 out of pocket donation*
= $2,500 that supports downtown revitalization
$5,000 contribution
= $3,750 tax credit
= $1,250 out of pocket donation*
= $5,000 that supports downtown revitalization
$7,500 contribution
= $5,625 tax credit
= $1,875 out of pocket donation*
= $7,500 that supports downtown revitalization
$10,000 contribution
= $7,500 tax credit
= $2,500 out of pocket donation*
= $10,000 that supports downtown revitalization
*Eligible for a federal income tax deduction as a charitable contribution to SDA, a 503(c)3 non-profit organization.