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POLICY DATABASE
Policy Summary

This provision establishes a business tax credit of $100,000 per year against business income and receipts tax liability for each year a business contributes $100,000 in cash to qualifying organization (qualifying community development corporations, qualifying nonprofit organization engaged in developing and implementing healthy food initiatives, or qualifying nonprofit intermediary). The credit is available to a limited number of businesses, each of whom must agree to contribute $100,000 in cash per year for ten consecutive years to a designated qualifying organization.

Background Information

State Pennsylvania
Jurisdiction Name Philadelphia
Jurisdiction Type City,
Population Size 800,000+
Legal Strategies
  • Creates an incentive for a change
  • Requires something, sets standards
Reach Limited scope
This law sets up a voluntary tax credit program.
Food System Category Process; Get;

Policy Details

Refers to priority populations?
No

Health-related goal?
Yes

See references to "healthy food initiatives." § 19-2604(6).

Environmental goal?
No

Economic goal?
Yes

See references to "financial, technical, policy or related assistance to community development corporations undertaking neighborhood economic development activities" and "tax credit." § 19-2604(6)(a.3),(b).

Includes findings?
No

Has a stated intent or purpose?
No

Includes definitions?
Yes

§ 19-2604(6)(a).

Addresses implementation?
Yes

"The Revenue Department shall provide application forms for businesses that wish to apply for tax credits under this Section, and it shall enter into contribution agreements" with up to 45 applicants to receive tax credits of up to $100,000 per business for contributions to qualifying organizations engaged in developing and and implementing healthy food initiatives. § 19-2604(6)(d)-(h).

Enforcement provisions?
No

Evaluation component?
Unclear

The law provides that "the Revenue Department shall by July 1 of each year submit a written report to the Mayor, with a copy to the President and Chief Clerk of Council, summarizing the City's experience during the prior year with the tax credit provided under this Section. § 19-2604(6)(g). However, the report is not required to include an evaluation component.

Requires extra investment?
Unclear

Although no position is created, a possible grant program can be created by the Director of Commerce that would offset the number of contribution agreements the Revenue Department can enter in any given tax year. § 19-2604(6)(h).

Code context and ordinance history

This policy is located in Philadelphia, Pennsylvania Code of Ordinances, Title 19 - Finance, Taxes and Collections, Chapter 19-2600 - Business Income and Receipt Taxes. History: Bill No. 020648 (approved December 3, 2002); Bill No. 030561 (approved October 30, 2003); Bill No. 100547 (approved November 10, 2010); Bill No. 110561 (approved October 26, 2011); Bill No. 120796 (approved April 17, 2013); Bill No. 180261-A (approved August 22, 2018).