The executive director of the Downtown Camas Association is informing businesses that want to participate in the Main Street Business and Occupation Tax Credit program they need to be ready to pledge within the first few days of January.
Carrie Schulstad said the state cap on Main Street credits in 2014 was reached on May 1, with a 48-hour warning that the cap was imminent.
“Many programs did not reach their desired donation levels, including Camas, because of the short notice,” she said.
There is a state cap on the Main Street credits of $1.5 million per year. Each of the 32 Main Street cities has a cap of $133,333 that they can receive as donations for the program.
The Washington State Main Street Program is predicting the cap will be met within the first day or two of the new year.
The program allows companies that pay state B&O taxes online to make a donation to the DCA, a 501(c) 3 non-profit organization. In return, the companies earn a 75 percent tax credit on their donation amount. The donations are eligible for federal tax deductions.
In 2014, eight business owners helped the DCA to receive $58,987. This year, there are 10 donors who helped the DCA receive $31,942.
Pledges are made through the Department of Revenue site. Payments have to be made to the DCA by Dec. 31, of the year the pledge was made.
The Washington State Main Street program will ask legislators in 2016 to double the state B&O tax credit limit to $3 million, to allow more communities to reach higher donation levels.
Uses of the B&O funding include downtown economic development, First Fridays and other DCA events, as well as local promotion, regional marketing and landscape projects.