R&D Tax Waiver

In May 2019, the Berkeley Municipal Code (Section 9.04.165) was amended to provide tax waivers for Berkeley small businesses that have received governmental research and development (R&D) grants. If your business received a governmental research grant to support your 2020 business activities, you may be eligible to request a waiver on your City of Berkeley business license tax.

Eligible small businesses must earn less than $100,000 dollars in annual gross receipts (excluding grant awards) and are able to deduct grant awards (up to $1 million cumulative) from annual reported gross receipts.  Eligible governmental grants are those that were distributed with the intent to meet federal, state, or local research needs including: stimulating the local economy or technological innovation; fostering entrepreneurial participation by women, socially, or economically disadvantaged persons, other underrepresented groups, partnership and cooperative R&D opportunities between small businesses and research institutions; or increasing commercialization opportunities.  

How to Apply 

If you believe your business is eligible to receive a waiver on your business license tax, please complete this Grant Waiver Tax Form and follow the below instructions.

1. On or before February 1, 2021, complete the Grant Waiver Tax Form  and email an electronic copy (or photo of it) to the City of Berkeley Office of Economic Development (OED) at oedmailbox@cityofberkeley.info.
2. Upon receiving notice of the status of your Grant Tax Waiver Form from OED via email, complete your Business License Renewal Form as follows:

a. If approved, complete your business license renewal form to correspond with the government R&D grant deductions requested.

b. If denied, complete your business license renewal form without any deductions.

   3.  On or before March 1, 2021, mail or deliver your completed  Business License Renewal Form along with a copy of the waiver request and payment to:
                       Finance Department
                       ATTN: Government Grant Tax Waivers
                       1947 Center Street, 1st Floor
                       Berkeley, CA 94704

Note: All Berkeley businesses are responsible for the timely filing of their annual business license renewal and corresponding tax payments. These must be received or postmarked before March 1, 2021. Businesses failing to meet this deadline will incur late payment penalties and interest.

If you require additional information or want to check the status of your waiver request, please contact us at oedmailbox@cityofberkeley.info, (510) 981-7530, or TDD (510) 981-6903.