Clean Technology Business Exclusion and Credit
Are you a clean technology business? The City and County of San Francisco has payroll expense tax and gross receipts tax exclusions and credits available for businesses that meet the City's eligibility criteria.
In 2005, the City and County of San Francisco passed the Payroll Expense Tax Exclusion for Qualified Clean Energy Technology Businesses Ordinance. It allows clean energy technology businesses that meet set eligibility criteria to receive a payroll expense tax exclusion. To qualify for the exclusion and/or credit, a person (including all domestic subsidiaries, affiliates, and other entitites related by ownership) must:
- Meet the definition of a Clean Technology business (see factsheet below);
- Employ a full-time staff of not more than one hundred employees;
- Become a recognized San Francisco Green Business; (***This process can range from 3 to 6+ months***)
- Submit all the application materials by December 31st of the first year the exclusion and/or credit is being claimed;
- File an on-time annual payroll expense tax return regardless of the amount of tax liability shown on the return;
- Document and track how employees whose compensation qualifies for the exclusion spend their time at work; and
- 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 Business Exclusion for a tax year must meet the eligibility requirements and submit their application materials no later than December 31 of that tax year. Renewal businesses must submit their renewal materials no later than January 31 of the next year.
CLEAN TECHNOLOGY BUSINESS EXCLUSION & CREDIT FACTSHEET
NEW BUSINESS APPLICATION FORM
ANNUAL RENEWAL AFFIDAVIT