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Philadelphia City Council Moves to Bolster B Corp Tax Credit, Boosting Sustainable Business Incentives

Official:Amending Chapter 19-2600 of The Philadelphia Code, entitled “Business Income and Receipts Taxes,” to reinstate and revise the Sustainable Business Tax Credit by increasing the total tax credit amount, by extending the tax year through which the tax credit is made available, and by increasing the number of businesses eligible to receive the tax credit; all under certain terms and conditions.

Sponsor: Councilmember Gauthier

Introduced: October 10, 2024

: Committee on Finance

business environment taxation

Plain-Language Summary

This bill revises and reinstates a tax credit program for businesses that are certified as 'B Corps', encouraging them to adopt sustainable practices and remain in Philadelphia.

What This Bill Does

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Increases the total tax credit amount for businesses that are certified as 'B Corps'.
Extends the tax year through which the tax credit is made available.
Increases the number of businesses eligible to receive the tax credit.
Revises the terms and conditions under which the tax credit is made available.

Both Sides

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The case for

By passing Bill 240875, our city is supporting the growth of socially responsible businesses by providing a more generous tax credit to certified B Corps, allowing them to invest more in their employees, customers, and communities. This benefits businesses that have demonstrated a commitment to transparency, accountability, and environmental sustainability, enabling them to contribute even more to the city's social and economic fabric. By expanding eligibility and revising the terms and conditions, the city is also encouraging more businesses to adopt these values and practices, ultimately benefiting residents and the local economy as a whole.

The case against

This bill shifts the tax burden from the general public to benefit a small, select group of businesses, increasing the tax credit amount and extending its availability. By expanding eligibility and revising terms, the bill creates a costly and burdensome program that will likely be administered by city staff, placing an additional enforcement burden on taxpayers. This precedent sets a potentially far-reaching and expensive entitlement for businesses, which could be difficult to scale back or modify in the future.

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