The Good Economist June 2016 | Page 10

The Latest on the Good Economy Challenge

City Council Passes Social Enterprise Legislation

On June 16th, City Council passed two pieces of legislation providing tax incentives for sustainable businesses. These bills serve as an acknowledgment of the considerable benefits provided by businesses that seek to be environmentally and socially responsible, and also hold the potential for 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, increase the number of credits available per year from 25 to 50, 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.

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.

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