Philadelphia has become the first city in the nation to provide a pilot tax incentive for certified sustainable businesses, according to True/Slant, and more cities may follow.
Certified B Corporations qualify for a $4,000 tax break after the Philadelphia City Council voted to provide the incentive as a means to reward companies engaging in sustainable business practices. Under the pilot, only 25 companies will be able to receive the tax credit, although the city may expand the program in the future.
B Corporation certification centers on achieving goals related to the so-called triple bottom line.
With Philadelphia on board, the aim is to have other cities follow suit, said Bart Houlahan, co-founder of B Lab, the nonprofit that certifies companies as B Corporations.
Yonkers, NY, and Media, Pa., have shown interest so far, Houlahan told True/Slant.
According to B Lab, qualifying B Corporations must: meet comprehensive and transparent social and environmental performance standards; institutionalize stakeholder interests; and, build collective voice through the power of a unifying brand.
There are 220 certified B Corporations, representing $1.1 billion in annual revenues across 54 industries.
Certified companies include Seventh Generation, Method, New Leaf Paper and ShoreBank, among others.