Main Street program tax credits depleted

When Colfax was accepted into the Washington Main Street Program in December, Colfax's Unified Executive Director Valoree Gregory wanted to jump on getting donations from businesses so those businesses could receive a tax credit incentive, valued up to 75 percent of the value of the donation.

The program annually allows up to $1.5 million in tax credit incentives to businesses which donate funds in Main Street communities. Gregory jumped on soliciting donations in Colfax at the new year, but she later found out she was too late.

“Usually we would have had until April to get our tax credits in, but we didn't even get to get our businesses or donors in the door,” she said. “All the tax credits were taken by January 4th.”

Gregory said that even those who run the Main Street Program said for this to happen was unusual and weird.

Gregory explained to the Gazette last month that the Main Street Program operates off of donations, so it is vital to receive donations.

“We will get funding as long as we get donations,” she said. “If we do not get donations, then the program doesn't matter.”

For the tax credit incentive, Gregory explained that if a business were to donate $1,000, a business and operation tax credit of $750 could then be received. The tax credits are distributed on a first come, first served basis and are given out statewide to Main Street communities.

Gregory said that she and others will continue to solicit donations and provide people with information about the program.

“We are getting prepared for next year,” she said. “Kimberly DeHart and I went around to businesses, and we gave them brochures and are telling people what it is.”

Gregory said that she hopes when the time comes for the tax credit incentives to roll around again, businesses will be ready to make donations at the first of the year to be able to capitalize on the incentives before they are gone.

Gregory added that Colfax Mayor Todd Vanek and City Administrator Mike Rizzitiello went to Olympia recently to speak with the legislature about raising the cap so that more communities can benefit from the program.

“They tried to talk to them and say how important it is for our community,” she said.

Rizzitiello told the Gazette that he thought the visit to Olympia went well.

“A lot of the other cities are in the same boat,” he said. “The house bill to raise the cap is still going. There is a lot of support behind it.”

Rizzitiello said it was exciting for Colfax to be accepted into the program, but not being able to take advantage of the tax credit incentives was upsetting.

“We basically just got into the program, but we didn't get to take part in it, and that wasn't fair,” he said.

Rizzitiello said that the Main Street Program will be able to provide the Downtown Association with needed funds to assist programs and “ways to improve how things in the downtown look,” something that the city has little control of with the Revised Code of Washington (RCW) laws, which are enacted by the legislature and are set forth as codes which a city, entity or group must follow.

“This is really one of the very few avenues left for us to do this,” he said. “There's very few incentive programs out there. Look to communities like Dayton to see how this program works and its benefits.”