Philadelphia, PA - After significant advocacy by the Sustainable Business Network of Greater Philadelphia (SBN), Philadelphia City Councilwoman Quiñones-Sanchez has introduced two pieces of legislation proposing tax incentives for sustainable businesses. These bills serve as acknowledgment of the considerable benefits provided by businesses that seek to be environmentally and socially responsible, and also hold the potential of encouraging a broader base of businesses to adopt such practices.
The first bill would improve the capacity of Philadelphia’s current Sustainable Business Tax Credit to fulfill its purpose of increasing the number of local sustainable businesses. If passed, the ordinance would increase the amount of the tax credit from $4,000 to $8,000, remove the cap limiting the program to 25 businesses, and extend the credit’s applicability to the net income portion of the Business Income and Receipts Tax (BIRT).
The second bill would amend the Jump Start Philly program to provide a total of 36 months of BIRT tax exemption for new businesses that obtain B Corp certification. Currently, the Jump Start Philly program provides up to 24 months of BIRT exemption for any new business that meets specified job creation requirements. But by placing traditional start-up businesses on equal standing with sustainable businesses, the program creates no incentive for the adoption of sustainable practices in the start-up phase. The bill would also place lower job creation requirements on new sustainable businesses than those applicable to traditional start-ups.
“This is a positive business investment for the city”, said Marcus Iannozzi, Principal of Message Agency, a local web development and technology firm and B Corp. “If we are striving for business and job creation
in the city, we should be seeking to create good jobs and better companies-- those don’t just have an economic impact, but a broader social one, too.
These pieces of legislation would dramatically expand the tax incentives currently provided to sustainable businesses. In 2009, Philadelphia became the first city to offer a Sustainable Business Tax Credit – a credit that aims to assist existing Certified B Corporations as well as incentivize more businesses to
obtain the certification. However, the credit is presently the lowest of any offered by the City of Philadelphia, and is too small to make a meaningful impact on a company’s bottom line. Additionally, the current program is limited to 25 businesses, representing only a small segment of current and potential businesses eligible.
“We applaud Councilwoman Quiñones-Sanchez for introducing this legislation, in recognition of the significant benefit that Certified B Corporations contribute to our local communities.”, said Jamie Gauthier, Executive Director of SBN. “B Corps are more likely to pay a living wage, more likely to donate a portion of profits to local charities, more likely to operate in ways that are environmentally responsible, and more likely to be owned by women or minority entrepreneurs. We hope that this legislation encourages even more local businesses to incorporate practices that work towards the common good.”
The need for both policies was identified in SBN’s Good Economy Challenge. The Good Economy Challenge is SBN’s issue campaign developed to highlight the importance of a continued focus on the sustainable economy, with small business as a centerpiece. It is intended to engage Philadelphia’s sustainable business owners, employees, customers, and allies in support of a thriving local economy.
