Eligible businesses can receive a business tax credit equal to the amount of business license taxes paid in the previous year. (photo by Sam Mulick)

The city of West Hollywood expanded its Business Tax Credit Program for commercial lease renewals with a modification to the city’s Municipal Code (Section 3.36.090) in response to concerns about the impact of commercial vacancies and challenges faced by small and mid-sized businesses. Formerly, the program was only applicable to large businesses.

Effective July 1, eligible businesses that extend an existing commercial lease by five or more years may now receive a business tax credit equal to the amount of business license taxes paid in the previous year. The expanded initiative is designed to help promote economic stability in West Hollywood and to encourage long-term business retention in the community. To meet eligibility guidelines, qualifying commercial lease renewals must be signed on or after July 1 and must renew or extend a commercial lease for five or more years, must be current in business license tax payments and must meet compliance with all city regulations and ordinance requirements.

Applicants will need a fully executed lease agreement (or a signed affidavit confirming a five-year renewal), plus confirmation that city business license taxes have no outstanding debt owed.

The application must be made within 60 days after the business enters into a lease renewal.

The applicant is eligible for a credit once every five years per property and business tax credit only applies to the first year of each qualifying five-year renewal or extension.

Home-based businesses, co-working/shared spaces and businesses not operating in traditional commercial settings are not eligible.

To apply, visit the city of West Hollywood’s Revenue Management Division website area and download an application form in the Business Lease Renewal Credit section at weho.org/city-government/city-departments/finance-and-technology-services/revenue-management/business-tax.