EMPLOYMENT TAX CREDITS
Enterprise Zone Employment Tax Credit
Annual federal employment tax credit for 20% of wages paid to DC resident employees (up to $3000 credit per employee). For more information please visit our Enterprise Zone Incentive section under Tools for Business.
Customized Training Program
Employers are reimbursed for funds spent to train District residents as skilled employees.
Welfare-to-Work Credit
Up to $8500 per employee in federal tax credits for employees that meet eligibility criteria ($5000 year one; $3500 year two). For more information please visit our Tax Credit section under Tools for Business.
Work Opportunity Credit
Annual federal employment tax credit of up to $2400 per employee for employees that meet eligibility criteria. For more information please visit our Tax Credit section under Tools for Business.
TARGETED & SPECIFIC INCENTIVES
Supermarket Tax Exemption Act of 2000
Exempts the owner of a qualified supermarket in a priority development area from sales taxes on the purchase of building materials and equipment for construction or substantial rehabilitation of a qualified supermarket; exempts the qualified supermarket from the payment of license fees, personal property taxes and real property taxes levied on the supermarket for 10 years.
DC Revenue Bond Program (Tax-Exempt Bond Financing)
Provides for the issuance and sale of tax-exempt revenue bonds to finance, refinance and reimburse costs to capital projects, including property acquisition, renovation, construction and purchase of machinery and equipment. For more information please visit our Enterprise Zone Incentive section under Tools for Business.
Downtown Tax Increment Financing Program
The Downtown retail incentive program sets aside $30 million of tax increment financing from retail sales for tenant improvements in the reemerging downtown retail core. Building owners will be able to receive up to $150 per square foot of District government TI allowances for qualified anchor and icon retailers that locate on sections of F, G, 7th or 11th Streets near some of the city’s most successful new retail, restaurant and museum venues. This program is designed to attract new apparel, general merchandise and home furnishing tenants to fill a portion of the 600,000 square feet of new and repositioned retail space within downtown's retail entertainment core. The program’s legislation has been presented to and approved by the DC Council and is currently receiving applications.
NEIGHBORHOOD ECONOMIC DEVELOPMENT INVESTMENT
The District Government has introduced the Neighborhood Economic Development Investment Amendment Act (NEDIAA) which will provide a comprehensive set of development incentives to authorize the use of public funding for a variety of economic development efforts throughout the District of Columbia – particularly in neighborhoods outside the downtown core. The program would make available:
- Tax Increment Financing (TIF) bonds
- Payment In Lieu of Taxes (PILOTs)
- Special Assessment Districts for the financing of bonds for public infrastructure projects
- Economic benefits and tax credits for qualified businesses
