2026 tax preference review: Neighborhood Revitalization through the Main Street Program
July 2026
Aline Meysonnat, Vivien Chen, research analysts
Pete van Moorsel, tax review coordinator; Eric Thomas, legislative auditor
Contact information
Legislative auditor's conclusion
Overall, there are more Main Street communities — and more businesses in them — since 2005. This meets the Legislature's goal, but the experience of individual communities varies.
Read the full reportKey points
- The Main Street program helps eligible nonprofits revitalize downtown commercial districts statewide. The nonprofits are called Main Street communities.
- Over 1,100 businesses contributed $40 million to the communities. Businesses received approval for $30 million in tax credits (2018-25).
- Donations are a key revenue source for the communities, representing between 13-95% of annual operating revenue.
- Donors receive almost all available tax credits each year, despite increases to the cap in 2017 and 2021.
- Including business counts in the communities' quarterly reports could help future evaluations.
Legislative auditor’s recommendations
State law requires the legislative auditor to recommend legislative action for each tax preference. The legislative auditor also makes a recommendation to the Department of Archaeology and Historic Preservation (DAHP).
Recommendation #1
The Legislature should continue the preference beyond its January 2032 expiration because it meets the Legislature's goal.
Overall, the number of businesses in Main Street communities has increased. There is variation between Main Street communities.
Implementing the recommendation would have these estimated impacts. Impacts do not account for changes in taxpayer behavior.
If this preference were continued without change, beneficiaries would have tax savings like those shown in the savings summary graph. This would reduce state revenues by a corresponding amount.
The Economic and Revenue Forecast Council (ERFC) forecasts state revenue. Its forecast reflects tax preference limits, actual use, and expiration dates.
On or before the preference's expiration date of January 1, 2032.
Responses from the Office of Financial Management (OFM) and the Department of Revenue (DOR) will be included with the proposed final report.
Recommendation #2
DAHP should collect more detailed information about the number of businesses within Main Street boundaries.
Improvements to the quarterly reports from Main Street communities to include annual business counts within their boundaries would help future evaluations.
JLARC staff assume the agency can improve reporting within existing financial resources.
December 31, 2026.
To be included in proposed final report.
Video summary
Read the full report
Neighborhood Revitalization through the Main Street Program (HTML)
Read an overview
Read the agency response
To be included in proposed final report
Legislative mandate