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New tax credit to help open your business

Businesses that open a physical location in select San Francisco zip codes may be eligible for an annual Gross Receipts Tax credit of up to $1 million through 2028.

  • For all businesses other than administrative offices, the tax credit is 0.45% of the businesses' taxable gross receipts from business activities described in the following NAICS codes:
    • 51 (Information)
    • 521 (Monetary Authorities-Central Bank)
    • 5221 (Depository Credit Intermediation)
    • 5222 (Nondepository Credit Intermediation)
    • 5223 (Activities related to Credit Intermediation)
    • 523 (Securities, Commodity Contracts, and Other Financial Investments and Related Activities)
    • 524 (Insurance Carriers and Related Activities)
    • 525 (Funds, Trusts, and Other Financial Vehicles)
    • 533 (Lessors of Nonfinancial Intangible Assets (except Copyrighted Works))
    • 54 (Professional, Scientific, and Technical Services) but not 541714 (Research and Development in Biotechnology (except nanotechnology))
    • 55 (Management of Companies and Enterprises)
    • 5611 (Office Administrative Services)
    • 5612 (Facilities Support Services)
    • 5613 (Employment Services)
    • 5614 (Business Support Services)
    • 5615 (Travel Arrangement and Reservation Services)
    • 5616 (Investigation and Security Services)
    • 5617 (Services to Buildings and Dwellings)
    • 5619 (Other Support Services)
    • 562 (Waste Management and Remediation Services)
    • 61 (Educational Services)
    • 62 (Healthcare and Social Assistance)
    • All other business activities not otherwise exempt and not elsewhere subjected to a gross receipts tax rate.
  • For administrative office businesses, the tax credit is 0.7% of the businesses' taxable payroll expense.

To take advantage of this tax credit, a business must:

  • Establish a first physical location in a commercial space in one of the following zip codes. This means the business did not have a physical location in San Francisco within the last three (3) years. The credit begins in the first year immediately following the year in which the business opens this physical location.
    • 94102
    • 94103
    • 94104
    • 94105
    • 94107
    • 94108
    • 94109
    • 94111
    • 94133
    • 94158

View the new tax credit and visit the Office of the Treasurer-Tax Collector for any assistance.