For businesses

Businesses that are in credit programs must file a return with the City, even if the credits reduce the tax liability to zero. The following credit programs are administered by the Department of Revenue and have specific City tax filing requirements. Follow the links below for details on each of the credit types.

Business tax credits

Credits for job growth

Jump Start Philadelphia

New businesses can use a 0% rate for Business Income and Receipts Tax (BIRT) and Net Profits Tax (NPT) for their first two years. They can also enjoy exempt license fees. To qualify, they must hire at least three full-time, non-family employees, who work in Philadelphia.

Sustainable Jump Start

Businesses that have not filed their first Business Income and Receipts Tax (BIRT) return, can use a 0% rate for BIRT for their first three years. To qualify, a business must get certified as sustainable and commit to hiring at least two full-time, non-family employees, who work in Philadelphia.

Job Creation Tax Credit

Businesses that create jobs in Philadelphia may be eligible for a credit of $5,000 per job created, or 2% of the annual wages paid. Additional guidelines apply.

All other Business Tax credits

Community Development Corporation (CDC) Tax Credit

Businesses contributing to Community Development Corporations may be eligible for a tax credit against the City’s Business Income and Receipts Tax (BIRT).

Green Roof Tax Credit

If you construct a green roof on your business building, you can claim a credit for 25% of the money you spend constructing the green roof. The maximum amount of this credit is $100,000.

Healthy Beverages Tax Credit

Businesses that sell healthy drinks–like water or milk–can be eligible for a tax credit of up to $2,000 against the Business Income and Receipts Tax (BIRT). Businesses calculate the credit amount by comparing the dollar amount it spends to buy healthy beverages from year to year.

Keystone Opportunity Zone Tax Credit

Keystone Opportunity Zones (KOZs) are parcel-specific areas where property owners and/or businesses that meet capital investment or new employment targets pay little or no taxes through 2018 or 2025. These taxes include the Business Income and Receipts Tax, Use and Occupancy Tax, Real Estate Tax, Net Profit Tax, State Business Tax, and State sales tax on items consumed at the KOZ site. KOZ sites are located throughout the City, including industrial parks, high tech centers and the Navy Yard.

Life Partner & Transgender Care Health Benefits Tax Credit

Businesses that provide health care benefits to life partners and their children may be eligible for a credit of lesser $4,000 or 25% of the amount expended by the business during the tax year to purchase coverage. Business that provide transgender people care coverage in their health insurance may be eligible for a credit of lesser $4,000 or 25% of the amount expended by the business during the tax year to purchase coverage.

Philadelphia Re-Entry Employment Program (PREP) Tax Credit

The Philadelphia Re-Entry Employment Program (PREP) was established for securing job creating economic development opportunities for ex-offenders through the expansion of existing businesses and the attraction of economic development prospects for the City of Philadelphia.

Sustainable Business Tax Credit

Businesses located in the City of Philadelphia can be classified as certified sustainable businesses once they are certified as B Corporations. For tax years 2012 through 2017, an eligible business shall receive a tax credit of $4,000, which may only be used against the tax based upon annual receipts. No more than 25 businesses will be certified as Sustainable Businesses in any one tax year.

Veterans Employment Tax Credit

Businesses that employ United States military veterans may be eligible for tax credits. Credit can be taken for honorably discharged veteran employees who were hired within 10 years of their active full-time duty.

 

 


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