By the Jerusalem Development Authority (JDA)
Jerusalem is the only city in central Israel that is defined as a priority area, a similar status to that enjoyed by peripheral regions of the country.
Reduced rates of income tax:
The Encouragement of Capital Investments Law establishes a reduced rate of income tax for an “approved enterprise” in Jerusalem. By 2015, the tax rate is expected to fall to just nine percent (9%). Alternatively, factories may choose a grants track under the same law. These benefits are provided by government ministries.
Encouraging employment – the “high salary track”:
Companies employing 15 or more workers who receive a “high salary” (defined as 2.5 times the average wage) are entitled to receive a contribution covering 20 percent of the salary cost of these employees for four years. This grant is provided by the Ministry of Industry, Trade and Employment.
Relocation grants for Hi-Tech and Biomed companies relocating to, or expanding in Jerusalem:
A grant of 400 NIS per sqm awarded to companies relocating to Jerusalem or expanding in Jerusalem. The grant is paid over two years (250 NIS per sqm in the first year and 150 NIS per sqm in the second year).
Grants for hi-tech companies:
The Jerusalem Development Authority encourages new and expanding hi-tech ventures in Jerusalem employing 3 to 10 employees. The grant is dependent on the number of employees, up to 500,000 NIS (50,000 NIS per employee), and is awarded to high-tech companies that are either new to, or expanding in Jerusalem.
Grants for biomed companies:
The Jerusalem Development Authority encourages new and expanding biomed companies in Jerusalem. The grant is dependent on the number of new employees, up to 3,990,000 NIS (50,000 – 96,000 NIS per employee), and is awarded to biomed companies creating new biomed jobs in Jerusalem.
Grants for student employment:
The Jerusalem Development Authority encourages hi-tech and biomed companies to employ students studying in Jerusalem’s academic institutions. A grant of up to 50% of the student’s salary or 2,000 NIS (the lower of the two) is awarded to companies employing students in their final year in part-time positions (up to 25 hours per week). The grant is awarded for a period of 6-9 month, after which the company can receive a one-time payment of 10,000 NIS if the student is retained in the company.
Grants for accelerator programs:
The Jerusalem Development Authority encourages the establishment of accelerator programs in cooperation with international corporation in Jerusalem. Accelerators will get 250,000 NIS for three years in order to grow, expand the number of start-ups, rent a physical space Etc.