Clean Technology Payroll Expense Tax Exclusion

Are you a clean technology business? The City and County of SanFrancisco has payroll expense tax and gross receipts tax exclusions andcredits available for businesses that meet the City's eligibilitycriteria.

In 2005, the City and County of San Francisco passed the PayrollExpense Tax Exclusion for Qualified Clean Energy Technology BusinessesOrdinance. It allows clean energy technology businesses that meet seteligibility criteria to receive a payroll expense tax exclusion. Toqualify for the exclusion and/or credit, a person (including alldomestic subsidiaries, affiliates, and other entitites related byownership) must:

  1. Meet the definition of a Clean Technology business (see factsheet below);
  2. Employ a full-time staff of not more than one hundred employees;
  3. Become a recognized San Francisco Green Business (NOTE: all required applications must be submitted at least 90 days prior to the close of the tax year);
  4. Submit all the application materials by December 31st of the first year the exclusion and/or credit is being claimed;
  5. File an on-time annual payroll expense tax return regardless of the amount of tax liability shown on the return;
  6. Document and track how employees whose compensation qualifies for the exclusion spend their time at work; and
  7. File an annual renewal affidavit confirming eligibility for the exclusion and/or credit by January 31st of each year after initial approval.

New businesses interested in receiving the Clean Technology BusinessExclusion for a tax year must meet the eligibility requirements andsubmit their application materials no later than December 31 of that taxyear. Renewal businesses must submit their renewal materials no laterthan January 31 of the next year.

 

 

To Apply

 

Application and renewal forms, as well as a fact sheet about the exclusion, can be downloaded from the San Francisco Green Business Program's web site.

 

Need Assistance?

Contact Natosha Safo at 415-554-6425 or natosha.safo@sfgov.org