San Francisco Mayor London Breed proposed plans to incentivize companies that are setting up offices in the city through tax breaks. Initially, it was estimated to cost the city around $37M in lost tax revenue in two fiscal years, but now it is revised to $25M. Recent amendments introduced by Supervisor Connie Chan restrict the tax breaks to certain zip codes in the city. - The proposed amendments focus the tax incentives on the downtown area and exclude the Richmond district, which is predominantly residential.
- The proposal comes at a time when office space availability in the city is at 31%, and rents have declined 13% QoQ and 20% from pre-pandemic levels.
- Mayor Breed's plan includes two components — preventing the closure of more businesses in the downtown area and attracting new office tenants to the city.
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