Berkeley councilmembers approve controversial tax cut for innovation industry start-ups

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The measure is meant to help start-up research and development companies by allowing them to focus their limited grant dollars on their projects.

BERKELEY, CA – AUGUST 18: Berkeley City Hall is photographed on Tuesday, Aug. 18, 2020, in Berkeley, Calif. BERKELEY — A proposal marketed as a support line for start-up research and development companies struggling to stay afloat in Berkeley was unanimously approved Tuesday by theBerkeley councilmembers voted to expand a 2019 tax exemption on government grants given to small research and development businesses to now also include grants from philanthropic groups.

“This is absolutely critical, especially at a time when we face a hostile federal administration who may take away money from local governments like Berkeley who are proud sanctuary cities,” Arreguin said. Arreguin pushed back on Harrison’s characterization of the issue during the meeting Tuesday, calling it “misinformation” and “fake news” that’s contributed to a “broader issue of toxicity and polarization in local government.”

A mix of opinions were shared during public comment with some raising concerns that tax breaks weren’t being given to other small businesses while representatives from the innovation sector encouraged the measure’s approval.

 

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