With millions of square feet vacant, San Jose considers tax breaks to fill downtown offices

CITY LEADERS WANT to give new businesses a tax break and parking benefits to lure them into downtown.

The City Council on Tuesday was expected to pass a downtown office incentives policy in an effort to bring not just big corporations into the city’s core, but also small businesses. Under the proposal, any new business looking for a minimum of 2,500 square feet would qualify — office space about the size of a four-bedroom home. Businesses who lease space for four years or more between January 2025 and December 2026 will be exempt from paying the city business tax and fees for at least five parking permits for two years.