JLARC recommends continuing Main Street tax credit, urges better DAP business counts

Aileen Mezona, JLARC staff, presented the preliminary review of the Main Street Business & Occupation tax credit and recommended that the legislature continue the preference beyond its Jan. 2032 expiration because it meets the legislature's goal of increasing businesses in Main Street communities.

Mezona said the number of designated Main Street communities rose from 9 in 2005 to 40 in 2025 and that donations to communities increased from $3,200,000 in 2018 to $6,600,000 in 2025. She told commissioners that donors have claimed about $19,200,000 in credits between 2019 and 2024 and that the preference supports local fundraising: "This brings us to the 1st legislative auditors recommendation, which is that the legislature should continue the preference beyond its 2032 expiration because it meets the legislature's goal."

JLARC staff also identified an inconsistency in how communities count businesses within Main Street boundaries and recommended that the Department of Archaeology and Historic Preservation collect more detailed, standardized business-count information to allow more reliable future evaluations. Commissioners asked for clarity on whether counting criteria should be provided by JLARC staff, DAP, or required by statute; staff responded that the recommendation to collect standard counts is directed to DAP while the recommendation to continue the preference is to the legislature.