Jump Start Philly is a program for entrepreneurs and new businesses in Philadelphia that reduces their tax liability. A business in its first two years of operation is exempt from paying the Business Income and Receipts Tax (BIRT).

To qualify for this exemption, your business must meet certain requirements:

• Your business must employ three employees by the end of the first year of operations, and six employees by the end of your second year of operations.
• The business must be “new,” meaning it did not file a BIRT return in the prior five years.
• The business may not be engaged in real estate activities.

The new business must file a New Business Waiver Application with the Department of Revenue. This is not a separate form, but part of the paper application for a Commercial Activity License.

In addition, please note that a business claiming the tax exemption must complete and mail a paper BIRT return, including the Worksheet N form. If applicable, the business should also file a paper Net Profits Tax (NPT) return.

BIRT and NPT paper returns can be found on the Department of Revenue’s website. Please make sure to complete returns for the right tax year.