There is a new report that Twitter is receiving over $20 million in tax breaks by engaging with charities in San Francisco. The agreement was drafted up in the city’s Community Benefit Agreement.
The Agreement covers any local business that has a $1 million payroll or more and involves training and hiring job applicants in San Francisco’s Central Market and Tenderloin neighborhoods. Twitter employees are also required to volunteer at nonprofits.
Twitter is pledging $60,000 in nonprofit organization funding and is donating $50,000 worth of computer hardware and software to local schools. On top of that, Twitter is also giving $60,000 worth of “promoted tweets” to nonprofits.
The CBA states:
The tax breaks exempt companies in the [San Francisco] mid-market neighborhood from the city?s 1.5% payroll taxes on new hires for six years. Twitter tax breaks are estimated to be worth $22 million over six years ?
?Besides Twitter, the companies include Microsoft subsidiary Yammer, a business-to-business social networking company; Zoosk, a Facebook for people in love to ?share their romantic journeys?; One Kings Lane, an online home décor retailer; ZenDesk, a cloud-based customer service software developer; and 21Tech, which provides IT support and consultation for state and federal governments.