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Clean Technology Payroll Expense Tax Exclusion

OVERVIEW

The City of San Francisco provides a payroll expense tax exclusion for up to 10 years to clean technology companies located in the City. 

TAX CREDIT

Exclusion from the requirement to pay local payroll taxes until 2020.

ELIGIBILITY

Any business recognized by the San Francisco Green Business Program, employing a full-time staff of not more than one hundred employees and engages in the development, manufacturing, or application of scientific advances that produce or contribute to the production of clean energy, (for the clean energy and clean technology business definition please refer to the Clean Technology fact sheet (pdf)).

Transition to Gross Receipts Tax and the Clean Technology Business Exclusion
Businesses granted a clean Technology Business Exclusion in a given tax year may credit against the sum of their Gross Receipts Tax and Payroll Expense Tax liability for that tax year the dollar amount by which that business would have been able to reduce its payroll expense tax liability under exclusion as if the payroll expense tax were in full force and effect and calculated at the rate of 1.5%. In no event shall such credit reduce a person’s combined Gross Receipts Tax and Payroll Expense Tax liability to less than zero. The credit may not be used by related entities or other members of a person’s combined group.

NEED ASSISTANCE? 

Contact Natosha Safo at 554-6425 or natosha.safo@sfgov.org

 

 

 

 

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