Historic Tax Incentive Boosts Downtown Bellingham Revitalization Efforts
Historic Tax Incentive Boosts Downtown Bellingham Revitalization Efforts
Governor Inslee Signs HB 2306 into Law to Expand B&O Tax Incentives
Bellingham, Washington – April 18, 2024 – Governor Inslee recently signed HB 2306 into law, expanding the Main Street Tax Credit Incentive Program, which allows businesses and organizations who pay state Business & Occupation (B&O) tax or Public Utility Tax (PUT) to pledge donations to Washington Main Street Communities, including Downtown Bellingham, and receive 75% back as a tax credit. This legislative action is in cooperation with the Department of Revenue and the Washington Trust for Historic Preservation and enables a potential third pledge season in 2024 and up to $333,333, up from $213,000 in 2023, for qualifying communities to reinvest state dollars into local needs. The Downtown Bellingham Partnership must receive $160,000 in tax credit pledges from businesses and organizations paying state B&O or PUT before October 1, 2024, to earn eligibility for a third round of pledges and is inviting new businesses to the program effective today. The first step for interested businesses is to contact the Downtown Bellingham Partnership’s Development Manager, Jenny Hagemann.
In addition to requiring communities to raise a minimum pledge amount to qualify for the third-quarter pledge extension, the state’s overall credit cap of $5 million remains unchanged and first-come, first-served. As one of 38 Washington Main Street communities vying to maximize the overall state tax credit cap of $5 million, the Downtown Bellingham Partnership is envisioning the transformational projects nearly $100,000 in additional funding could afford:
Doubling the number of businesses benefiting from Storefront Improvement Grant funds, enhancing the community's aesthetic appeal.
Installation of dynamic lighting across city-center streets to facilitate evening community events and foster a vibrant atmosphere.
Year-round busking and live music performances on sidewalks, creating memorable experiences for visitors and residents alike.
Expansion of mural installations to breathe new life into old concrete facades, enriching the cultural landscape of Downtown Bellingham.
"The Main Street Tax Credit Incentive Program has been a vital portion of our annual budget planning for years and we are grateful for the base of businesses who pledge and donate each year,” said Lindsey Payne Johnstone, Interim Executive Director at the Downtown Bellingham Partnership. “The potential of expanding funding capacity in 2024 means we can imagine executing the long list of placemaking projects and community events we know enhance Downtown district vitality but require additional capacity.
Businesses and organizations interested in learning more about the Main Street Tax Credit Incentive Program should contact Jenny Hagemann, the Downtown Bellingham Partnership’s Development and Communications Manager, at jenny@downtownbellingham.com for a no-pressure consultation and assistance enrolling.