Tax Credits and Incentives

LOCAL
Clean Technology Payroll Tax Exclusion
The City of San Francisco provides a payroll tax exclusion for up to 10 years to clean technology companies located in the City. Any business that employs less than 100 employees is eligible for the payroll tax exclusion.
NOTE:  The application deadline for the 2009 Cleantech Payroll Tax Exclusion has been extended to February 15, 2010.

SF Enterprise Zone (EZ) Payroll Tax Credit
The local Enterprise Zone program enables businesses located in targeted locations of the City to reduce their payroll tax expense for qualified employees. The tax credit is for new jobs created on or after January 1, 1992.

Biotechnology Payroll Tax Exclusion
San Francisco’s Mission Bay community is at the center of the biotechnology revolution. To support the expansion of this flourishing industry and the creation of new jobs, the City of San Francisco offers a payroll tax exclusion for up to 7.5 years to San Francisco-based businesses engaged in biotechnology pursuits.

Film Production Incentives
The SF Film Office offers a the "Scene in San Francisco" rebate program, in which qualifying productions are eligible for a refund of all payroll tax and city fees up to $600,000 per production.

STATE
California Enterprise Zone (EZ) Tax Credits & Incentives 
The State of California EZ program helps businesses reduce their state income tax liability through hiring tax credits, business expense deductions, accelerated depreciation, and a 15-year carry-over of up to 100% of net operating losses. Eligible businesses must be located in designated Enterprise Zone areas.

California New Jobs Tax Credit
Effective January 1, 2009, any small businesses (20 employees or less) not located in the Enterprise Zone that adds one or more full time positions in 2009 receives a $3,000 tax credit per position.

FEDERAL
Work Opportunity Tax Credit (WOTC)
The Work Opportunity Tax Credit is an income tax credit for employers who hire employees from eligible groups including youth, ex-offenders, and public assistance recipients.

Historic Preservation Tax Credit
The US Department of the Interior supports the preservation of historic buildings through federal tax incentives, including a 20% tax credit for the certified rehabilitation of historic structures, and a 10% tax credit for the rehabilitation of non-historic buildings built before 1936.

Renewal Community (RC) Tax Credits & Incentives
San Francisco businesses are eligible to receive wage credits, tax deductions, capital gains exclusions and bond financing to stimulate economic development and job growth in locally designated Federal Renewal Community zones.