Turn your state taxes into local impact.
Instead of sending your Washington State B&O taxes to Olympia, you can redirect them to Downtown Walla Walla.
Main Street Tax Credit Incentive Program
Think of this as a win for your business and a win for downtown.
Through the Washington Main Street Tax Credit Incentive Program, eligible businesses can invest directly in their local Main Street program and keep more of their tax dollars working here at home.
When your contribution is approved by the Department of Revenue, you receive a Business & Occupation or Public Utility Tax credit worth 75% of what you gave. In other words, your money doesn’t disappear into the void. It helps fuel downtown revitalization, support local businesses, and strengthen the place we all rely on.
Smart move. Big impact. And yes, the paperwork is absolutely worth it.
How it Works
Program Timeline and Availability
Each January, $5 million in tax credits is made available statewide, allowing businesses to receive credits for donations made to Main Street communities, including Downtown Walla Walla Foundation.
From January through March 31, credits are reserved for donations to Downtown Walla Walla Foundation.
After April 1, any unused credits are released statewide and are available on a first come, first served basis.
If credits are still available by October 1, a final round opens.
Quarterly Breakdown
Quarter 1: January - March 31
Up to $119,047 in credits are available for businesses who contribute to DWWF.
Quarter 2: Opens April 1 at 8 a.m.
Up to $160,000 in tax credits are available statewide. Businesses can apply on a first come, first served basis until all credits are claimed.
Quarter 3: Opens October 1 at 8 a.m.
If credits are still available, the cap increases to $250,000 in credits.
The statewide cap is $5 million annually. Once credits are claimed, they are gone for the year.
Resources
How to Participate
Pledge Early – Submit your pledge through the WA Department of Revenue by March 31. If you miss this deadline, make sure you pledge asap starting April 1 at 8 a.m.
Receive Confirmation – Once your pledge is approved, we will send you an invoice.
Make Your Contribution – Send your payment to the Downtown Walla Walla Foundation by October 31.
Claim Your Credit– In January 2027, you will have the tax credit (worth 75% of your contribution) available in your DOR account.
FAQ
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75% Tax Credit – Businesses receive a state B&O tax credit equal to 75% of their contributed amount, keeping tax dollars working locally.
Eligibility – Businesses must be registered to file state excise taxes electronically to participate.
How to Pledge – Pledges must be submitted online through the WA Department of Revenue, selecting the Downtown Walla Walla Foundation as the credited community.
Payment Timeline – Contributions can be made throughout the year, but the full pledged amount must be received by October 31.
Tax Credit Usage – The tax credit must be applied in the year following the contribution and cannot be carried forward.
Limited Availability – After March 31, tax credits are first-come, first-served statewide, and availability is not guaranteed.
Exact Payment Required – Contributions must match the pledged amount exactly. If a business needs to adjust its pledge, it must contact the WA Department of Revenue before making a payment.
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January 12, 2026 (8 a.m.) – Pledging opens. $119,047 in tax credits is guaranteed for the first quarter.
March 31, 2026 – Last day to guarantee a tax credit.
April 1, 2026 (8 a.m.) – Any unclaimed credits are redistributed statewide on a first-come, first-served basis until the total statewide cap is reached. Once the statewide cap is met, no additional pledges will be accepted.
October 31, 2026 (5 p.m.) – Last day for businesses to ensure their contributions are received if they pledged on or before this date.
November 17, 2026 – Any unclaimed or canceled credits are redistributed statewide on a first-come, first-served basis.
December 15, 2026 (5 p.m.) – Final deadline for all contributions.
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What is the Main Street Tax Credit Incentive Program?
This program allows businesses to redirect their B&O or Public Utility Tax to the Downtown Walla Walla Foundation instead of sending it to the state. In return, businesses receive a 75 percent tax credit on their B&O tax bill the following year.
Why should I participate?
Your tax dollars stay local, supporting downtown businesses, events, and economic development. You receive a 75 percent tax credit, and your contribution may also qualify for a federal tax deduction (check with your accountant).
Who is eligible?
Any Washington business that pays B&O or Public Utility Taxes and files electronically.
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When should I pledge?
Pledge by March 31 to guarantee your tax credit as long as funds are available within our local cap. After that, unclaimed credits go into a statewide pool and become first come, first served. The later you wait, the higher the risk of missing out.
What happens after I pledge?
After pledging through the WA Department of Revenue, wait for confirmation. Once approved, we will send you an invoice.
When do I need to pay?
Your full contribution must be received by November 1 to receive your tax credit.
Can I pay immediately after pledging?
No. Wait for confirmation from the Department of Revenue before submitting payment.
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When can I use my tax credit?
Your 75 percent tax credit will be available in your DOR account in January 2027 to apply to your 2026 B&O tax bill.
Can I carry forward unused tax credits?
No. Tax credits must be used in the year they become available.
Can I also deduct my donation on federal taxes?
Possibly. Since DWWF is a 501(c)(3) nonprofit, your contribution may qualify as a charitable deduction. Check with your accountant for details.
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Pledge: The amount of B&O tax liability you commit to redirecting to DWWF through the Main Street Tax Credit Incentive Program.
Contribution (or Donation): The full amount you contribute to DWWF after approval.
Tax Credit: The amount the state credits to your account, equal to 75% of your contribution, applied to your 2026 B&O tax bill.
Apply: The process of submitting your pledge through the WA Department of Revenue to secure your tax credit.
Learn More at WA Trust for Historic Preservation
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Baker-Boyer Bank
Banner Bank
City of Walla Walla
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35th + Butter
Baker Boyer Bank
Banner Bank
Clarette’s Restaurant
City of Walla Walla Government
Colville Street Patisserie
Destination Crossfit
Hummingbird Tea
Pine Cone Creamery
SHKS Architects, P.S., Inc.
The Maple Counter
The Mill
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35th+Butter
Baker-Boyer National Bank
Banner Bank
City of Walla Walla
DAMA Wines
Express Employment Professionals
Marcy’s Bar & Lounge
SHKS Architects, P.S., Inc.
The Maple Counter Cafe
The Mill
Title One
Your contributions through the Main Street Tax Credit Program help keep Downtown Walla Walla thriving. We appreciate your support.
