Code of the District of Columbia

Subchapter VI. Tax on Residents and Nonresidents.


§ 47–1806.01. Tax on residents and nonresidents — “Taxable income” defined.

For the purposes of this chapter, and unless otherwise required by the context, the term “taxable income” means the entire net income of every resident, in excess of the personal exemptions and credits for dependents allowed by § 47-1806.02 and that portion of the entire net income of every nonresident which is subject to tax under §§ 47-1808.01 to 47-1808.06.


(July 16, 1947, 61 Stat. 343, ch. 258, art. I, title VI, § 1; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-1806.1.

1973 Ed., § 47-1567.

Section References

This section is referenced in § 47-1803.03, § 47-1808.06, and § 47-1809.03.


§ 47–1806.02. Tax on residents and nonresidents — Personal exemptions.

(a) In the case of a resident, the exemptions provided by this section shall be allowed as deductions in computing taxable income.

(b) An exemption shall be granted for the taxpayer and an additional exemption for the spouse (or domestic partner) of the taxpayer if the spouse (or domestic partner), for the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not the dependent of another taxpayer.

(c) There shall be allowed an additional exemption for a taxpayer who qualifies as a head of household; provided, that this subsection shall not apply for a tax year in which the deduction amount for personal exemptions under subsection (i) of this section is $2,200 or more.

(d) Until § 47-181(c)(9) is implemented, there shall be allowed an additional exemption for a taxpayer who is blind at the close of his or her taxable year, and an additional exemption for the spouse (or domestic partner) of the taxpayer if the spouse (or domestic partner) is blind at the close of the taxable year of the taxpayer and, if the spouse (or domestic partner), for the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not the dependent of another taxpayer, except that if the spouse (or domestic partner) dies during such taxable year the determination regarding blindness shall be made as of the time of death.

(e) Until § 47-181(c)(9) is implemented, there shall be allowed an additional exemption for a taxpayer who has attained the age of 65 before the close of his or her taxable year, and an additional exemption for the spouse (or domestic partner) of the taxpayer if the spouse (or domestic partner) has attained the age of 65 before the close of his or her taxable year and, if the spouse (or domestic partner), for the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not the dependent of another taxpayer.

(f)(1) There shall be allowed an additional exemption for each dependent:

(A) Whose gross income for the calendar year in which the year of the taxpayer begins is less than the higher of:

(i) $1,675, increased annually, beginning January 1, 2013, by the cost of- living adjustment (if the adjustment does not result in a multiple of $50, rounded to the next lowest multiple of $50); or

(ii) The amount set forth in subsection (i) of this section; or

(B) Who is a child of the taxpayer and who:

(i) Has not attained the age of 19 at the close of the calendar year in which the taxable year of the taxpayer begins; or

(ii) Is a student.

(2) No exemption shall be allowed under this subsection for any dependent who has made a joint return with his or her spouse (or domestic partner) for the taxable year beginning in the calendar year in which the taxable year of the taxpayer begins.

(3) For purposes of this subsection:

(A) The term “child” means a child as defined in § 151(c)(3) of the Internal Revenue Code of 1986; and

(B) The term “student” means a student as defined in § 151(c)(4) of the Internal Revenue Code of 1986.

(g) In the case of a return made for a fractional part of a taxable year, the personal exemptions shall be reduced to amounts that bear the same ratio to the full exemptions provided as the number of months in the period for which the return is made bear to 12 months.

(h) In the case of an individual for whom a deduction under this section is allowable to another taxpayer for a taxable year in which the taxable year beginning in the calendar year in which the individual’s taxable year begins, the exemption amount applicable to the individual for his or her taxable year shall be zero.

(h-1)(1) For taxable years beginning after December 31, 2014, the amount of the personal exemption otherwise allowable for the taxable year in the case of an individual whose adjusted gross income exceeds $150,000 shall be reduced by 2% for every $2,500 (or fraction thereof) by which the taxpayer's adjusted gross income for the taxable year exceeds $150,000.

(2) No amount of the personal exemption in excess of the amount provided in paragraph (1) of this subsection shall be available for an adjusted gross income in excess of $275,000.

(i) For purposes of this section, the deduction for personal exemptions shall be:

(1) For taxable years beginning after December 31, 2012, but before January 1, 2018, $1,675, increased annually by the cost-of-living adjustment (if the adjustment does not result in a multiple of $50, rounded to the next lowest multiple of $50); or

(2) For taxable years beginning after December 31, 2017, the personal exemption amount prescribed in section 151 of the Internal Revenue Code of 1986 without reduction for the phaseout of section 151(d)(3) of the Internal Revenue Code of 1986.


(July 16, 1947, 61 Stat. 343, ch. 258, art. I, title VI, § 2; May 27, 1949, 63 Stat. 132, ch. 146, title IV, § 412; Mar. 31, 1956, 70 Stat. 70, ch. 154, § 6; Sept. 4, 1957, 71 Stat. 605, Pub. L. 85-281, § 2; Oct. 21, 1975, D.C. Law 1-23, title VI, § 601(8), 22 DCR 2109; Oct. 1, 1987, D.C. Law 7-29, § 2(f)(1), 34 DCR 5097; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Oct. 20, 2005, D.C. Law 16-33, § 1046(b), 52 DCR 7503; May 12. 2006, D.C. Law 16-98, § 2(e), 53 DCR 1869; Mar. 2, 2007, D.C. Law 16-191,§ 5(c), 53 DCR 6794; Mar. 14, 2007, D.C. Law 16-292, § 2(c), 54 DCR 1080; Sept. 18, 2007, D.C. Law 17-20, § 1052, 54 DCR 7052; Mar. 3, 2010, D.C. Law 18-111, § 7241(d), 57 DCR 181; Feb. 26, 2015, D.C. Law 20-155, § 7012(c)(4), 61 DCR 9990; Oct. 22, 2015, D.C. Law 21-36, § 7040, 62 DCR 10905; Oct. 8, 2016, D.C. Law 21-160, § 7028(c)(3), 63 DCR 10775; Dec. 13, 2017, D.C. Law 22-33, § 7172(b), 64 DCR 7652.)

Prior Codifications

1981 Ed., § 47-1806.2.

1973 Ed., § 47-1567a.

Section References

This section is referenced in § 47-1801.04, § 47-1806.01, and § 47-1809.05.

Effect of Amendments

D.C. Law 16-33, rewrote subsecs. (f)(1)(A) and (i).

D.C. Law 16-98, in subpar. (f)(1)(A), substituted “$2,400, increased annually, beginning January 1, 2008, by the cost-of-living adjustment (if the adjustment does not result in a multiple of $50, rounded to the next lowest multiple of $50)” for “$1,500”; in subsec. (i), substituted “$2,400, increased annually, beginning January 1, 2008, by the cost-of-living adjustment (if the adjustment does not result in a multiple of $50, rounded to the next lowest multiple of $50)” for “$1,500”.

D.C. Law 16-191, in subsec. (f)(1)(A), validated a previously made technical correction.

D.C. Law 16-292 substituted “spouse (or domestic partner)” for “spouse” throughout the section.

D.C. Law 17-20, in subsecs. (f)(1)(A) and (i), substituted “$1,675, increased annually, beginning January 1, 2009, by the cost-of-living adjustment (if the adjustment does not result in a multiple of $50, rounded to the next lowest multiple of $50)” for “$1,500”.

D.C. Law 18-111, in subsecs. (f)(1)(A) and (i), substituted “beginning January 1, 2013,” for “beginning January 1, 2009,”.

The 2015 amendment by D.C. Law 20-155 rewrote (c); added “Until Section 47-181(c)(I) is implemented” in (d) and (e); rewrote (f)(1)(A); and added (h-1).

The 2015 amendment by D.C. Law 21-36 rewrote (c); added “For tax years beginning after December 31, 2014” in (h-1)(1); and deleted “and subject to Section 47-1806.04(e)” following “in accordance with § 47-181” in (i)(2).

Applicability

Section 7174 of Law 22-33 provided that the changes made to this section by Law 22-33 shall apply as of January 1, 2018.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7172(b) of Fiscal Year 2018 Budget Support Congressional Review Emergency Act of 2017 (D.C. Act 22-167, Oct. 24, 2017, 64 DCR 10802).

For temporary (90 days) amendment of this section, see § 7172(b) of Fiscal Year 2018 Budget Support Emergency Act of 2017 (D.C. Act 22-104, July 20, 2017, 64 DCR 7032).

For temporary (90 day) amendment of section, see §§ 1046(b), 1047, of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).

For temporary (90 day) amendment of section, see §§ 1052, 1053 of Fiscal Year 2008 Budget Support Emergency Act of 2007 (D.C. Act 17-74, July 25, 2007, 54 DCR 7549).

For temporary (90 day) amendment of section, see § 7111(d) of Fiscal Year 2010 Budget Support Emergency Act of 2009 (D.C. Act 18-187, August 26, 2009, 56 DCR 7374).

For temporary (90 day) amendment of section, see § 7241(d) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) amendment of section, see § 7241(d) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

For temporary (90 days) amendment of this section, see § 7112(a)(4) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of this section, see § 7012(c)(4) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of this section, as amended by D.C. Law 20-155, § 7012(c), see § 2(l)(2)(C) of the Fiscal Year 2015 Budget Support Clarification Emergency Act of 2014 (D.C. Act 20-461, November 6, 2014, 61 DCR 11784, 20 STAT 4368).

For temporary (90 days) amendment of this section, see § 7012(c)(4) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

For temporary (90 days) amendment of this section, as amended by D.C. Law 20-155, § 7012(c), see § 2(l)(2)(C) of the Fiscal Year 2015 Budget Support Clarification Emergency Act of 2014 (D.C. Act 20-587, January 13, 2015, 62 DCR 1294, 21 STAT 758).

For temporary (90 days) amendment of this section, see § 7016(q) of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).

For temporary (90 days) amendment of section, see § 8 of the Fiscal Year 2016 Second Budget Support Clarification Emergency Amendment Act of 2015 (D.C. Act 21-202, Nov. 23, 2015, 62 DCR 15276).

For temporary (90 days) amendment of this section, see § 8 of the Fiscal Year 2016 Budget Support Clarification Congressional Review Emergency Amendment Act of 2016 (D.C. Act 21-307, Feb. 18, 2016, 63 DCR 2182).

Temporary Legislation

For temporary (225 days) amendment of this section, see § 2(n) of the Fiscal Year 2015 Budget Support Clarification Temporary Amendment Act of 2014 (D.C. Law 20-179, March 7, 2015, 62 DCR 424).

For temporary (225 days) amendment of this section, see § 16 of the Fiscal Year 2016 Budget Support Clarification Temporary Amendment Act of 2015 (D.C. Law 21-76, Feb. 27, 2016, 63 DCR 264).

Short Title

Short title: Section 1051 of D.C. Law 17-20 provided that subtitle F of title I of the act may be cited as the “Personal Exemption Increase Act of 2007”.

Editor's Notes

Section 1053 of D.C. Law 17-20 provided this subtitle shall apply as of January 1, 2008.

Section 1047 of D.C. Law 16-33 provided that § 1046 shall apply as of Jan. 1, 2006.

Section 3(b) of D.C. Law 16-98 provided that Section 2(d) and (e) shall apply as of January 1, 2007.

Effectiveness and expiration of D.C. Law 16-98: Section 4 of D.C. Law 16-98 required that “this act shall take effect subject to the inclusion of its fiscal effect in an approved budget and financial plan; provided, that this act shall expire on October 1, 2006 if its fiscal effect has not been included in an approved budget and financial plan or in the Fiscal Year 2007 Budget Request Act of 2006.”

The Budget Director of the Council of the District of Columbia has determined, as of November 2, 2007, that the fiscal effect of Law 16-98 had not been included in an approved budget and financial plan by October 1, 2006. Therefore, the amendments made to this section by Law 16-98, have expired as if never in effect.


§ 47–1806.03. Tax on residents and nonresidents — Imposition and rates.

(a)(1) In the case of a taxable year beginning after December 31, 1986, there is imposed on the taxable income of every resident a tax determined in accordance with the following table:

Not over $10,000 6% of the taxable income.
Over $10,000 but not over $20,000 $600, plus 8% of the excess over $10,000.
Over $20,000 $1,400, plus 10% of the excess over $20,000.

(2) In the case of a taxable year beginning after December 31, 1987, there is imposed on the taxable income of every resident a tax determined in accordance with the following table:

Not over $10,000 6% of the taxable income.
Over $10,000 but not over $20,000 $600, plus 8% of the excess over $10,000.
Over $20,000 $1,400, plus 9.5% of the excess over $20,000.

(3) In the case of a taxable year beginning after December 31, 1999, there is imposed on the taxable income of every resident a tax determined in accordance with the following table:

Not over $10,000 5% of the taxable income.
Over $10,000 but not over $20,000 $500, plus 7.5% of the excess over $10,000.
Over $20,000 $1,250, plus 9.5% of the excess over $20,000.

(4)(A) In the case of a taxable year beginning after December 31, 2000, there is imposed on the taxable income of every resident a tax determined in accordance with the following table:

Not over $10,000 5% of the taxable income.
Over $10,000 but not over $30,000 $500, plus 7.5% of the excess over $10,000.
Over $30,000 $2,000, plus 9.3% of the excess over $30,000.

(B) Repealed.

(5)(A) In the case of a taxable year beginning after December 31, 2003, there is imposed on the taxable income of every resident a tax determined in accordance with the following table:

Not over $10,000 5.0% of the taxable income.
Over $10,000 but not over $30,000 $500, plus 7.5% of the excess over $10,000.
Over $30,000 $2,000, plus 9.0% of the excess over $30,000.

(6)(A) In the case of a taxable year beginning after December 31, 2004, there is imposed on the taxable income of every resident a tax determined in accordance with the following table:

Not over $10,000 4.5% of the taxable income.
Over $10,000 but not over $40,000 $450, plus 7% of the excess over $10,000.
Over $40,000 $2,550, plus 8.7% of the excess over $40,000.

(B) Subparagraph (A) of this paragraph shall not apply if:

(i) The certification by the Chief Financial Officer required by § 47-387.01 demonstrates that the accumulated general fund balance for the immediately preceding fiscal year is less than 5% of the general fund operating budget for the current fiscal year, the nominal GDP growth is less than or equal to 3.5%, or the real GDP growth is less than or equal to 1.7%; or

(ii) The Mayor demonstrates, and the Chief Financial Officer certifies, that a proposed budget will not be balanced as required by § 1-206.03(c) if the scheduled tax rate decrease under subparagraph (A) of this paragraph takes effect.

(C) If the rate reduction scheduled for the previous year was not implemented, the rate imposed by this paragraph shall be the last unimplemented percentage decrease scheduled for a previous year, instead of that prescribed by this paragraph.

(7)(A) In the case of a taxable year beginning after December 31, 2005, there is imposed on the taxable income of every resident a tax determined in accordance with the following table:

Not over $10,000 4% of the taxable income.
Over $10,000 but not over $40,000 $400, plus 6% of the excess over $10,000.
Over $40,000 $2,200, plus 8.5% of the excess over $40,000.

(B) Subparagraph (A) of this paragraph shall not apply if:

(i) The certification by the Chief Financial Officer required by § 47-387.01 demonstrates that the accumulated general fund balance for the immediately preceding fiscal year is less than 5% of the general fund operating budget for the current fiscal year, the nominal GDP growth is less than or equal to 3.5%, or the real GDP growth is less than or equal to 1.7%; or

(ii) The Mayor demonstrates, and the Chief Financial Officer certifies, that a proposed budget will not be balanced as required by § 1-206.03(c) if the scheduled tax rate decrease under subparagraph (A) of this paragraph takes effect.

(C) If the rate reduction scheduled for the previous year was not implemented, the rate imposed by this paragraph shall be the last unimplemented percentage decrease scheduled for a previous year, instead of that prescribed by this paragraph.

(8)(A) [Expired].

(B) This paragraph shall expire on January 1, 2015.

(9) In the case of the taxable year beginning after December 31, 2014, there is imposed on the taxable income of every resident a tax determined in accordance with the following table:

Not over $10,000 4% of the taxable income.
Over $ 10,000 but not over $ 40,000 $400, plus 6% of the excess over $ 10,000.
Over $ 40,000 but not over $ 60,000 $2,200, plus 7% of the excess over $ 40,000.
Over $ 60,000 but not over $ 350,000 $3,600, plus 8.5% of the excess over $ 60,000.
Over $350,000 $28,250, plus 8.95% of the excess above $350,000.

(10) In the case of taxable years beginning after December 31, 2015, there is imposed on the taxable income of every resident a tax determined in accordance with the following table:

Not over $10,000 4% of the taxable income.
Over $10,000 but not over $40,000 $400, plus 6% of the excess over $ 10,000.
Over $ 40,000 but not over $ 60,000 $2,200, plus 6.5% of the excess over $ 40,000.
Over $ 60,000 but not over $ 350,000 $3,500, plus 8.5% of the excess over $ 60,000.
Over $350,000 but not over $1,000,000 $28,150, plus 8.75% of the excess above $350,000.
Over $1,000,000 $85,025, plus 8.95% of the excess above $1,000,000.

(b) In lieu of the method of computation provided for in subsection (a) of this section, individuals may elect to compute the tax in accordance with a tax table prescribed by the Mayor for such taxable year, subject to such rules and regulations as the Mayor may prescribe. The amount of tax to be paid under the tax table prescribed by the Mayor shall be consistent with the tax rates provided for in subsection (a) of this section.

(c) An individual not living with a spouse or domestic partner on the last day of the taxable year, for the purposes of this chapter, shall be considered as a single person.

(d) This section shall not apply to any return filed by a fiduciary for an estate or trust or to any married (or domestic partner) resident living with his or her spouse (or domestic partner) at any time during the taxable year where such spouse (or domestic partner) files a return and computes the tax thereon without regard to this section.

(e) If a spouse or domestic partner living together file separate returns, each shall be treated as a single person for the purposes of this section.


(July 16, 1947, 61 Stat. 344, ch. 258, art. I, title VI, §§ 3, 4; May 27, 1949, 63 Stat. 132, ch. 146, title IV, § 413; May 18, 1954, 68 Stat. 117, ch. 218, title XII, § 1201; Mar. 31, 1956, 70 Stat. 70, ch. 154, §§ 7, 8; Sept. 4, 1957, 71 Stat. 606, Pub. L. 85-281, § 5; Sept. 30, 1966, 80 Stat. 858, Pub. L. 89-610, title VII, § 701; Aug. 2, 1968, 82 Stat. 612, Pub. L. 90-450, title II, § 201; June 30, 1970, 84 Stat. 366, Pub. L. 91-297, title IV, § 401; Oct. 21, 1975, D.C. Law 1-23, title VI, § 601(9), 22 DCR 2110; June 15, 1976, D.C. Law 1-70, title XII, § 1201(a), 23 DCR 564; June 11, 1982, D.C. Law 4-118, § 109, 29 DCR 1770; Oct. 1, 1987, D.C. Law 7-29, § 2(f)(2), 34 DCR 5097; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Oct. 20, 1999, D.C. Law 13-38, § 2702(h), 46 DCR 6373; Oct. 1, 2002, D.C. Law 14-190, § 802(b), 49 DCR 6968; Mar. 14, 2007, D.C. Law 16-292, § 2(d), 54 DCR 1080; Sept. 12, 2008, D.C. Law 17-231, § 41(h), 55 DCR 6758; Sept. 20, 2012, D.C. Law 19-168, § 8009(b), 59 DCR 8025; Sept. 26, 2012, D.C. Law 19-171, § 37(c), 59 DCR 6190; Feb. 26, 2015, D.C. Law 20-155, § 7012(c)(5), 61 DCR 9990; Dec. 13, 2017, D.C. Law 22-33, § 7172(c), 64 DCR 7652.)

Prior Codifications

1981 Ed., § 47-1806.3.

1973 Ed., § 47-1567b.

Section References

This section is referenced in § 47-340.26, § 47-858.04, § 47-1806.07, § 47-1806.09a, § 47-1806.09e, § 47-1806.10, § 47-1812.08, and § 47-4214.

Effect of Amendments

D.C. Law 13-38 added new paragraphs (3) to (7) to subsec. (a).

Section 2703(c) of D.C. Law 13-38 provided: “Section 2702(f), (h), (i), and (j) shall apply for tax years beginning after December 31, 1999.”

D.C. Law 14-190, in subsec. (a), repealed par. (4)(B), and rewrote pars. (5), (6), and (7).

The 2012 amendment by D.C. Law 19-168 added (a)(8).

The 2012 amendment by D.C. Law 19-171 substituted “spouse or domestic partner” for “spouses or domestic partners” in (e).

The 2015 amendment by D.C. Law 20-155 substituted “January 1, 2015” for “January 1, 2016” in (a)(8)(B); and added (a)(9) and (a)(10).

Cross References

Tax rate changes, authority of the Council of the District of Columbia, see § 47-504.

Applicability

Section 7174 of Law 22-33 provided that the changes made to this section by Law 22-33 shall apply as of January 1, 2018.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7172(c) of Fiscal Year 2018 Budget Support Congressional Review Emergency Act of 2017 (D.C. Act 22-167, Oct. 24, 2017, 64 DCR 10802).

For temporary (90 days) amendment of this section, see § 7172(c) of Fiscal Year 2018 Budget Support Emergency Act of 2017 (D.C. Act 22-104, July 20, 2017, 64 DCR 7032).

For temporary (90 day) amendment of section, see § 802(b) of Fiscal Year 2003 Budget Support Emergency Act of 2002 (D.C. Act 14-453, July 23, 2002, 49 DCR 8026).

For temporary (90 day) amendment of section, see § 6 of Revised Fiscal Year 2012 Budget Support Technical Clarification Emergency Amendment Act of 2011 (D.C. Act 19-157, October 4, 2011, 58 DCR 8688).

For temporary (90 day) amendment of section, see § 8009(b) of Fiscal Year 2013 Budget Support Emergency Act of 2012 (D.C. Act 19-383, June 19, 2012, 59 DCR 7764).

For temporary (90 day) amendment of section, see § 8009(b) of Fiscal Year 2013 Budget Support Congressional Review Emergency Act of 2012 (D.C. Act 19-413, July 25, 2012, 59 DCR 9290).

For temporary (90 days) amendment of this section, see § 7022(c)(5) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of this section, see § 7012(c)(5) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of this section, see § 7012(c)(5) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

Temporary Legislation

Section 6 of D.C. Law 19-53 added subsec. (a)(8) to read as follows:

“(8)(A) In the case of a taxable year beginning after December 31, 2011, there is imposed on the taxable income of every resident a tax determined in accordance with the following table:

“If the taxable income is: ...... The tax is:

“Not over $ 10,000 ...... 4% of the taxable income

“Over $ 10,000 but not over $ 40,000 ...... $ 400, plus 6% of the excess over $ 40,000.

“Over $ 40,000 but not over $ 350,000 ...... $ 2,200, plus 8.5% of the excess over $ 40,000

“Over $350,000 ...... $28,550, plus 8.95% of the excess above $350,000.

“(B) This paragraph shall expire as of January 1, 2016.”.

Section 15(b) of D.C. Law 19-53 provides that the act shall expire after 225 days of its having taken effect.

For temporary (225 days) amendment of this section, see § 2(o) of the Fiscal Year 2015 Budget Support Clarification Temporary Amendment Act of 2014 (D.C. Law 20-179, March 7, 2015, 62 DCR 424).


§ 47–1806.04. Tax on residents and nonresidents — Credits — In general.

(a) The amount of tax payable under this subchapter by a resident of the District in respect to the taxable year shall be reduced by a credit equal to the amount of individual income tax such individual is required to pay and, in fact, has paid to any state, territory or possession of the United States, or political subdivision thereof, upon income attributable to such state, territory or possession of the United States, or political subdivision thereof, for such taxable year or portion thereof while concurrently a resident of the District. The credit provided under this subsection shall not exceed the proportion of the tax otherwise due under this chapter that the amount of the individual’s adjusted gross income received by him, or accrued to him if on an accrual basis, subject to tax in the other jurisdiction bears to his entire adjusted gross income received by him, or accrued to him, while he was concurrently a resident of the District. The Mayor may require satisfactory proof of the payment of such income taxes to another jurisdiction. The credit provided by this subsection shall not be allowed against any tax imposed under §§ 47-1808.01 through 47-1808.06. Beginning with any taxable year after December 31, 1990, no franchise tax, license tax, excise tax, unincorporated business tax, occupation tax, or any tax characterized as such by the other taxing jurisdiction, even if applied to earned or business income, shall qualify as a credit under this section.

(b) The amount deducted and withheld as tax under this chapter during any calendar year upon the wages of any individual shall be allowed as a credit to the recipient of the income against the tax imposed by this chapter, for taxable years beginning in such calendar year. If more than 1 taxable year begins in such calendar year such amount shall be allowed as a credit against the tax for the last taxable year so beginning.

(c)(1) If a return is filed for a full calendar or fiscal year beginning after December 31, 1988, an individual who incurs household and dependent care services necessary to engage in gainful employment and who is allowed a credit under § 21 of the Internal Revenue Code of 1986, shall be allowed, against the tax imposed by this chapter for the taxable year, an amount equal to 32% of the credit allowed under § 21 of the Internal Revenue Code of 1986, regardless of the amount of the credit actually used to offset federal tax liability.

(2) If a return is filed for a period of less than a full calendar or fiscal year beginning after December 31, 1988, the credit allowed under this subsection shall be the credit calculated according to the provisions of paragraph (1) of this subsection, multiplied times the ratio that the employment-related expenses, allowed under § 21 of the Internal Revenue Code of 1986 and incurred during the period of residency in the District, bear to the total employment-related expenses allowed under § 21 of the Internal Revenue Code of 1986, and incurred for the whole taxable year.

(3) In no event shall the credit allowed under paragraph (1) or (2) of this subsection exceed the amount of tax otherwise due without reference to this subsection.

(d) This section shall take effect in accordance with the provisions of § 1-206.02(c)(1) and shall apply to taxable years beginning after December 31, 1978.

(e)(1)(A) If a return is filed for a full calendar year, the amount of the tax payable under this subchapter by a resident of the District with respect to the taxable year shall be reduced by a low income credit designed to make the District’s income tax threshold equal to the federal income tax threshold. For the purposes of this subsection, the term “tax threshold” means the point at which a taxpayer begins to owe income tax after allowance of the standard deduction and all personal exemptions to which the taxpayer is entitled, but before application of any itemized deductions or credits. The credit shall be calculated in accordance with a table prescribed by the Chief Financial Officer.

(B)(i) If a return is filed for a period of less than a full calendar year beginning after December 31, 2014, the income eligibility for the credit allowed under this subsection shall be determined by annualizing the income earned during the portion of the year the taxpayer was a District resident.

(ii) If a part-year resident meets the annualized income and other requirements of this subsection, the part-year resident shall be entitled to the pro rata share of the credit allowed by the annualized income. The pro rata share shall be determined by multiplying the credit allowed, from the table prescribed by the Chief Financial Officer, for the annualized income by the fraction consisting of the number of days the taxpayer was a District resident over 365 days (or, in the case of a leap year, 366 days).

(2) The credit provided for in paragraph (1) of this subsection shall not be allowed to a resident:

(A) Who has a federal tax liability determined in accordance with section 55 of the Internal Revenue Code of 1986;

(B) Who has net federal adjusted gross income in excess of the minimum federal income tax filing requirements. For the purposes of this subparagraph, the term “net federal adjusted gross income” means federal adjusted gross income less:

(i) Taxable refunds, credits, or offsets of state and local income tax;

(ii) Tax-exempt municipal bond interest income; and

(iii) Federal taxable amount of social security or tier 1 railroad retirement income; or

(C) Who has elected to claim the earned income tax credit provided for in subsection (f) of this section.

(3) In no event shall the credit allowed under paragraph (1) of this subsection exceed the amount of the tax otherwise due without reference to this section.

(4) For taxable years beginning after December 31, 2017, the credit provided for in paragraph (1) of this subsection shall no longer be allowed.

(f)(1)(A) If a return is filed for a full calendar or fiscal year beginning after December 31, 2004, an individual who is allowed an earned income tax credit under section 32 of the Internal Revenue Code of 1986 shall be allowed a credit against the tax imposed by this chapter for the taxable year in an amount equal to 40% of the earned income tax credit allowed under section 32 of the Internal Revenue Code of 1986; provided, that the credit shall not be allowed to a resident who has elected to claim the low income tax credit provided for in subsection (e) of this section.

(B) If a return is filed for a full calendar or fiscal year beginning after December 31, 2014, an individual with a qualifying child who is eligible for and claimed an earned income tax credit on their federal tax return under section 32 of the Internal Revenue Code of 1986 shall be allowed a credit against the tax imposed by this chapter for the taxable year in an amount equal to 40% of the earned income tax credit allowed under section 32 of the Internal Revenue Code of 1986; provided, that the credit shall not be allowed to a resident who has elected to claim the low income tax credit provided for in subsection (e) of this section.

(C)(i) If a return is filed for a full calendar or fiscal year beginning after December 31, 2014, an individual without a qualifying child who is eligible for an earned income tax credit on their federal tax return under section 32 of the Internal Revenue Code of 1986 (without regard to the limit in section 32(a)(2) of the Internal Revenue Code of 1986) shall be allowed a credit against the tax imposed by this chapter in an amount equal to the credit percentage of so much of a taxpayer’s earned income as does not exceed the earned income amount.

(ii) The amount of the credit allowable to a taxpayer under subsubparagraph (i) of this subparagraph for any taxable year shall not exceed the credit percentage of the earned income amount, over the phaseout percentage of 8.48% of so much of the adjusted gross income (or, if greater, the earned income) of the taxpayer for the taxable year as exceeds the phaseout amount of $17,235, increased annually by the cost-of-living adjustment.

(2) If a return is filed for a period of less than a full calendar or fiscal year beginning after December 31, 2004, the credit allowed under this subsection shall be reduced to the amount that bears the same ratio to the credit computed under the provisions of paragraph (1) of this subsection as the number of months in the period for which the return is made bears to 12 months.

(3) The credit allowed under this subsection shall be refundable to the resident claiming the credit.

(4) For the purposes of this subsection, credit percentage, earned income, earned income amount, and qualifying child shall have the same meanings as provided in section 32 of the Internal Revenue Code of 1986.

(g)(1) A taxpayer described in paragraph (2) of this subsection, and who otherwise would not qualify for the earned income tax credit under subsection (f)(1)(C) of this section or subsection 32(b) of the Internal Revenue Code of 1986, shall be allowed a credit equal to the credit allowed in subsection (f) of this section.

(2) To qualify for a credit as described in subsection (f) of this section, a taxpayer shall satisfy all the following requirements during the entire period for which the taxpayer seeks the credit:

(A) The taxpayer shall be a District resident taxpayer;

(B) The taxpayer shall be between the ages of 18 and 30;

(C) The taxpayer shall be the parent of a minor child with whom the taxpayer does not reside;

(D) A court order shall require the taxpayer to make child support payments, which are payable through a government-sponsored support collection unit, which order must have been in effect for at least one-half of the taxable year for which the taxpayer is seeking the credit; and

(E) The taxpayer shall have paid an amount in child support in the taxable year at least equal to the amount of current child support due during the taxable year for which the taxpayer is seeking the credit.


(July 16, 1947, 61 Stat. 345, ch. 258, art. I, title VI, § 5; Mar. 31, 1956, 70 Stat. 71, ch. 154, § 9; Apr. 19, 1977, D.C. Law 1-124, title IV, § 401(d)(1), 23 DCR 8749; Mar. 3, 1979, D.C. Law 2-146, §§ 2, 3, 25 DCR 6987; Mar. 6, 1979, D.C. Law 2-158, § 4, 25 DCR 7002; June 11, 1982, D.C. Law 4-118, § 110, 29 DCR 1770; June 24, 1987, D.C. Law 7-9, § 2(i), 34 DCR 3283; Oct. 1, 1987, D.C. Law 7-29, § 2(f)(3)-(5), 34 DCR 5097; May 10, 1989, D.C. Law 7-231, § 50, 36 DCR 492; Sept. 20, 1989, D.C. Law 8-25, § 3, 36 DCR 4721; Sept. 26, 1995, D.C. Law 11-52, § 114, 42 DCR 3684; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Oct. 19, 2000, D.C. Law 13-172, § 2202, 47 DCR 6308; Sept. 6, 2001, D.C. Law 14-22, § 2, 48 DCR 5751; Oct. 20, 2005, D.C. Law 16-33, § 1052, 52 DCR 7503; Aug. 16, 2008, D.C. Law 17-219, § 7002, 55 DCR 7598; Feb. 26, 2015, D.C. Law 20-155, § 7012(c)(6), 61 DCR 9990; Oct. 22, 2015, D.C. Law 21-36, §§ 7041, 7062, 62 DCR 10905; Dec. 13, 2017, D.C. Law 22-33, § 7172(d), 64 DCR 7652.)

Prior Codifications

1981 Ed., § 47-1806.4.

1973 Ed., § 47-1567d.

Section References

This section is referenced in § 47-1816.03 and § 47-4214.

Effect of Amendments

D.C. Law 13-172 added subsec. (f) and in subsec. (e)(2) substituted “a resident” for “any resident” and inserted “or who has elected to claim the earned income tax credit provided for in subsection (f) of this section.”

D.C. Law 14-22 rewrote subsec. (f) which had read:

“(f)(1) If a return is filed for a full calendar or fiscal year beginning after December 31, 1999, an individual who is allowed an earned income tax credit under section 32 of the Internal Revenue Code of 1986 shall be allowed a credit against the tax imposed by this chapter for the taxable year in an amount equal to 10% of the earned income tax credit allowed under section 32 of the Internal Revenue Code of 1986; provided, that the credit shall not be allowed to a resident who has elected to claim the low income tax credit provided for in subsection (e) of this section.

“(2) If a return is filed for a period of less than a full calendar or fiscal year beginning after December 31, 1999, the credit allowed under this subsection shall be the reduced to the amount that bears the same ratio to the credit computed under the provisions of paragraph (1) of this subsection as the number of months in the period for which the return is made bears to 12 months.

“(3) The credit allowed under this subsection shall be refundable.”

D.C. Law 16-33, added subsec. (g) and rewrote subsec. (f).

D.C. Law 17-219, in subsec. (f)(1), substituted “40%” for “35%”.

The 2015 amendment by D.C. Law 20-155 added (e)(4); redesignated (f)(1) as (f)(1)(A); added (f)(1)(B) and (C); added (f)(4); and added “subsection (f)(1)(C) of this section or” in (g)(1).

The 2015 amendment by D.C. Law 21-36 rewrote (e)(1)and (e)(2); and substituted “40% of the earned income tax credit allowed under section 32 of the Internal Revenue Code of 1986; provided, that the credit shall not be allowed to a resident who has elected to claim the low income tax credit provided for in subsection (e) of this section” for “40% of the earned income tax credit allowed under section 32 of the Internal Revenue Code of 1986” in (f)(1)(B).

Applicability

Section 7174 of Law 22-33 provided that the changes made to this section by Law 22-33 shall apply as of January 1, 2018.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7172(d) of Fiscal Year 2018 Budget Support Congressional Review Emergency Act of 2017 (D.C. Act 22-167, Oct. 24, 2017, 64 DCR 10802).

For temporary (90 days) amendment of this section, see § 7172(d) of Fiscal Year 2018 Budget Support Emergency Act of 2017 (D.C. Act 22-104, July 20, 2017, 64 DCR 7032).

For temporary (90 day) amendment of section, see §§ 1052, 1053 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).

For temporary (90 day) addition, see § 2 of Designated Appropriation Allocations Emergency Amendment Act of 2008 (D.C. Act 17-488, July 28, 2008, 55 DCR 9157).

For temporary (90 day) amendment of section, see § 201(c) of Fiscal Year 2009 Balanced Budget Support Emergency Amendment Act of 2008 (D.C. Act 17-572, December 2, 2008, 55 DCR 12452).

For temporary (90 days) amendment of this section, see § 7022(c)(6) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of this section, see § 7012(c)(6) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of this section, as amended by D.C. Law 20-155, § 7012(c), see § 2(l)(2)(D) of the Fiscal Year 2015 Budget Support Clarification Emergency Act of 2014 (D.C. Act 20-461, November 6, 2014, 61 DCR 11784, 20 STAT 4368).

For temporary (90 days) amendment of this section, see § 7012(c)(6) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

For temporary (90 days) amendment of this section, as amended by D.C. Law 20-155, § 7012(c), see § 2(l)(2)(D) of the Fiscal Year 2015 Budget Support Clarification Emergency Act of 2014 (D.C. Act 20-587, January 13, 2015, 62 DCR 1294, 21 STAT 758).

For temporary (90 days) amendment of this section, see §§ 7016(r), 7032 and 7033 of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).

Temporary Legislation

Section 2(a) of D.C. Law 17-275 added a provision to read as follows: “Sec. 7002a. Applicability. This act shall apply as of January 1, 2009.”.

Section 4(b) of D.C. Law 17-275 provided that the act shall expire after 225 days of its having taken effect.

For temporary (225 days) amendment of this section, see § 2(o) of the Fiscal Year 2015 Budget Support Clarification Temporary Amendment Act of 2014 (D.C. Law 20-179, March 7, 2015, 62 DCR 424).

Short Title

Short title: Section 7001 of D.C. Law 17-219 provided that subtitle A of title VII of the act may be cited as the “Earned Income Tax Credit Act of 2008”.

Short title of subtitle L of title I of Law 16-33: Section 1052 of D.C. Law 16-33 provided that subtitle L of title I of the act may be cited as the Expansion of the Earned Income Tax Credit Act of 2005.

Editor's Notes

Section 1053 of D.C. Law 16-33 provided that § 1052(b) shall apply for taxable years beginning after December 31, 2005.

Section 7033 of D.C. Law 17-219 repealed section 3 of D.C. Law 14-22.

Applicability of D.C. Law 21-36: Section 7063 of D.C. Law 21-36 provided that § 7062 of the act shall apply to taxable years beginning after December 31, 2014.


§ 47–1806.05. Tax on residents and nonresidents — Credits — Campaign contributions. [Repealed]

Repealed.


(July 25, 1989, D.C. Law 8-17, § 2(c), 36 DCR 4160.)

Prior Codifications

1981 Ed., § 47-1806.5.


§ 47–1806.06. Tax on residents and nonresidents — Credits — Property taxes.

(a)(1) For purposes of providing relief to certain District of Columbia residents who own their principal place of residence and who reside in the same, an income tax credit shall be allowed to the eligible claimant equal to the amount by which all or a portion of real property taxes the taxpayer pays on his or her principal place of residence for the taxable year exceeds a percentage (as determined under paragraph (2) of this subsection) of his or her household gross income for that year. District of Columbia residents who rent their principal place of residence, who reside in the same and who are eligible claimants under the provisions of this section, shall be allowed an income tax credit equal to the amount by which rent paid constituting property taxes, deemed for the purposes of this subsection to be 20% of rent, on his or her principal place of residence for the taxable year, exceeds a percentage (as determined under paragraph (2) of this subsection) of his or her household gross income for that year and which exceeds the amount of any rental supplement payments, received by the claimant pursuant to the provisions of title III of the Rental Housing Act of 1977, during that year. The credit shall not exceed a total of $1,000.

(2)(A) For taxable years beginning after December 31, 1977, the percentage required under paragraph (1) of this subsection to be determined for claimants other than elderly, blind, or claimants with disabilities shall be the percentage specified in the following table:

If household income is: Tax credit equals:
$0 — $2,999 95% of property tax* exceeding 1.5% of household gross income
$3,000 — $4,999 75% of property tax* exceeding 2.0% of household gross income
$5,000 — $6,999 75% of property tax* exceeding 2.5% of household gross income
$7,000 — $9,999 75% of property tax* exceeding 3.0% of household gross income
$10,000 — $14,999 75% of property tax* exceeding 3.5% of household gross income
$15,000 — $20,000 75% of property tax* exceeding 4.0% of household gross income

*or rent paid constituting property tax (15% of rent)

(B) For taxable years beginning after December 31, 2013, the percentage required under paragraph (1) of this subsection to be determined for all claimants shall be the percentage specified in the following table:

If adjusted gross income is: Tax credit equals:
$0 — $24,999 100% of property tax* exceeding 3.0% of adjusted gross income of the tax filing unit
$25,000 — $40,000 100% of property tax* exceeding 4.0% of adjusted gross income of the tax filing unit

*or rent paid constituting property tax (20% of rent)

(C) For taxable years beginning after December 31, 2015, the percentage required under paragraph (1) of this subsection to be determined for all claimants other than eligible senior claimants shall be the percentage specified in the following table:

If adjusted gross income is: Tax credit equals:
$0 — $24,999 100% of property tax* exceeding 3.0% of adjusted gross income of the tax filing unit
$25,000 — $50,000 100% of property tax* exceeding 4.0% of adjusted gross income of the tax filing unit

*or rent paid constituting property tax (20% of rent)

(2A) For taxable years beginning after December 31, 2013, the percentage required under paragraph (1) of this subsection to be determined for eligible senior claimants shall be 100% of property tax or of rent constituting property taxes accrued exceeding 3.0% of adjusted gross income of the tax filing unit.

(3) Repealed.

(4) All eligible claimants who rent their principal place of residence, who reside in the same and who receive rental supplements under the provisions of title III of the Rental Housing Act of 1977, shall, when computing their income tax credit pursuant to this section, deduct from the amount of said credit the total amount of rental supplements received during the taxable year. The amount of credit which is in excess of any rental supplements received shall constitute the eligible claimant’s total income tax credit under this section. If the amount of rental supplements received exceeds the amount of credit calculated under this section, then the eligible claimant’s credit shall equal zero.

(b) For purposes of this section:

(1)(A) The term “household gross income” means gains, profits, and income derived from salaries, wages, or compensation for personal services of whatever kind and in whatever form paid, including salaries, wages, and compensation paid by the United States to its officers and employees, or income derived from any trade or business or sales or dealings in property whether real or personal, including capital assets as defined in this chapter growing out of the ownership or sale of or interest in such property; income from rent, royalties, interest, dividends, securities, or transactions of any trade or business carried on for gain or profit, or gains or profits and income derived from any source whatever, including but not limited to cash distributions from a business or investment entity in which the claimant has an interest, alimony, and separate maintenance payments (including amounts received under separate maintenance agreements), strike benefits, cash public assistance and relief (not including relief or credit granted under this section), sick pay, workmen’s compensation, proceeds of life insurance policies, the gross amount of any pension or annuity (including railroad retirement benefits, veterans’ disability pensions, or payment received under the federal Social Security Act), state or District of Columbia unemployment compensation laws, and nontaxable interest received from the United States, a state or any agency or instrumentality thereof. The word “income” does not include gifts from nongovernmental sources, food stamps, or food or other relief in kind supplied by a governmental agency.

(B) In determining household gross income the exclusions from gross income as provided by § 47-1803.02(a) shall not apply.

(2) The term “household income” shall have the same meaning as the words “adjusted gross income” as defined in subsection (c) [repealed] of § 47-1803.02 [see now § 47-1803.02(b)]. For purposes of determining adjusted gross income within the meaning of this section, gross income shall mean household income as defined in this section.

(3) The term “home” means the claimant’s dwelling house, whether owned or rented by the claimant, and so much of the land surrounding it as is reasonably necessary for use of the dwelling as a home, and may include a multi-unit building or a multi-purpose building and a part of the land upon which it is located.

(4) The term “claimant” means a person who has filed a claim under this section, was an owner of record of a home in the District, or a lessee, tenant at will, or tenant at sufferance paying rent on a home in the District, during the entire calendar year preceding the year in which he files a claim for relief under this section. Only one claimant per tax filing unit per year shall be entitled to relief under this section.

(5) Repealed.

(6) Repealed.

(7) Repealed.

(8)(A) The term “rent paid” is that amount paid by a claimant to a landlord solely for the right of occupancy of a home in the District, including the right to use the personal property located therein. Utility charges may be included in the amount of rent paid if they are included in the amount paid to a landlord in connection with the right to occupancy. The term “rent paid” does not include:

(i) Rental supplements obtained under the provisions of title III of the Rental Housing Act of 1977 [D.C. Law 2-54];

(ii) Advance rental payments for another period;

(iii) Rental deposits, whether or not expressly set out in the rental agreement;

(iv) Any charges for medical services or food provided by the landlord; or

(v) Payments made to a landlord for the right of occupancy of property which is exempt from District real property taxes.

(B) The term “rent constituting property taxes accrued” means 20% of the rent paid in any calendar year by a claimant solely for the right of occupancy of his home in the calendar year, and which constitutes the basis of a claim in the succeeding calendar year for a credit for property taxes paid.

(9) The term “eligible senior claimant” means a claimant who is 70 years or older at any time during the tax year and whose adjusted gross income does not exceed $60,000.

(c) In the event that any installment of rent for a calendar year for which a claim is filed is paid prior to the beginning of or subsequent to the end of such calendar year, it shall be included as rent for the year for which the claim was made and for no other year, and shall not be included as rent for purposes of this section for the year in which the installment was paid.

(d) If the Mayor determines that the rent paid was not the result of an agreement entered into at arm’s length between the tenant and his landlord, the Mayor may adjust the rent to a reasonable amount for the purposes of this section.

(e)(1) Beginning with calendar year 1977, and for each succeeding calendar year, if a claimant owns and occupies his or her home in the District on December 31st of any such year, “property taxes accrued” means real property taxes (exclusive of special assessments, interest on a delinquency in payment of tax, and penalties and services charges) as reflected on the District real estate tax bill ordinarily sent out in September of such year; provided, however, that any amount of real property tax deferred under the provisions of §§ 47-845, 47-845.02 and 47-845.03 shall be considered as “property taxes accrued” for the purpose of determining the credit allowable under this section. If a home is an integral part of a larger unit such as a multi-purpose building or a multi-dwelling building, property taxes accrued shall be that percentage of the total property taxes accrued as the value of the home bears to the total value of the property.

(2) When a claimant owns or rents 2 or more different homes in the District in the same calendar year, “property taxes accrued” or “rent constituting property taxes accrued” shall be based on the claimant’s status as an owner or renter on December 31st of such calendar year.

(3) When a claimant rents 2 or more different homes in the District in the same calendar year, rent paid by the claimant during that year shall be determined by dividing the rent paid pursuant to the last rental agreement in force during that calendar year by the number of months during that calendar year for which this rent was paid and by multiplying the result by 12.

(f) The right to file under this section shall be personal to the claimant, but such right may be exercised by his legal guardian or attorney-in-fact. The right to file a claim shall not survive the death of a claimant. If a claimant dies after having filed a claim, any amount refunded as a result thereof shall be disbursed to his estate; provided, that if no executor or administrator qualifies therein within 2 years of the filing of the claim, or no petition for distribution of a small estate is filed pursuant to §§ 20-2101 and 20-2102, the claim shall not be allowed.

(g) Subject to the limitations provided in this section, commencing with the taxable year beginning after December 31, 1974, and for succeeding taxable years, the claimant may claim as a credit against the District income taxes otherwise due on his income, property taxes accrued or rent constituting property taxes accrued for that year. If the allowable amount of such claim exceeds the income taxes otherwise due from the claimant, or other tax liabilities of the claimant to the District, or if there are no District income taxes due from the claimant, the amount of the claim not used as an offset against income taxes or other tax liabilities of the claimant to the District shall be paid or credited to the claimant. No interest shall be allowed on any payment made to a claimant pursuant to this section.

(h) No claim with respect to property taxes accrued or with respect to rent constituting property taxes accrued shall be allowed unless a District of Columbia individual income tax return or (if the claimant is not required to file such return) a claim for credit under this section is filed with the District on the forms and in such manner and with such information as the Mayor may prescribe. Any claim for credit shall be filed with the District on or before the expiration of the 3-year statute of limitations. The statute of limitations shall commence to run on April 15th of the year following the year for which the claim is made.

(i) The amount of any claim otherwise payable under this section may be applied by the District against any outstanding tax liability of the claimant to the District.

(j)(1) In determining eligibility for the credit allowable under this section, and for the purpose of determining outstanding tax liability (if any) of the claimant to the District household income for which the claim is filed and the claimant’s outstanding tax liability (if any) shall be determined on the basis of the adjusted gross income of the tax filing unit, which is defined as an individual or married couple that would—were their income above the filing threshold—file an individual income tax return. The tax filing unit also includes any other persons who would be claimed as dependents on that tax return.

(2) In the case of spouses or domestic partners who, during the entire calendar year for which a claim is filed under this section, maintain separate homes, for the purpose of determining household income and the claimant’s outstanding tax liability (if any), such spouses or domestic partners shall be deemed to have been unmarried during the calendar year for which the claim is made.

(k) No credit shall be allowed under this subchapter for any year during which the person claiming the credit was a dependent, under any state, federal, or District law levying a tax on income, unless during that year such person is or becomes 65 years of age or older.

(l) A claimant whose claim is based on the amount of rent paid shall substantiate the rent paid upon a request by the Mayor.

(m)(1) If, on an audit of any claim filed under this section, the Mayor finds the amount to have been incorrectly computed, he shall determine the correct amount and notify the claimant in accordance with the procedures set forth in § 47-1812.05.

(2) If it is determined that a claim was filed with fraudulent intent, it shall be disallowed in full. If the claim has been paid or a credit has been allowed against income taxes otherwise payable, the credit shall be canceled and the amount paid shall be assessed against the claimant and recovered in the same manner as provided for the collection of taxes under § 47-412 [repealed].

(n) No claim for relief under this section shall be allowed to any person who was not living in a home which was subject to District of Columbia real property taxation during the calendar year for which the claim is filed.

(o) The Mayor is authorized to provide a table which will approximate, as closely as feasible, the amount of relief allowable under this section.

(p) If it is determined by the District that a claimant received title to his home in the District or became legally obligated to pay rent for his home in the District primarily for the purpose of receiving benefits under the provisions of this section, his claim shall be disallowed.

(q) The Council of the District of Columbia is empowered to make such changes in the amount of annual relief provided under subsection (a) of this section as it may deem proper.

(r)(1) The maximum credit amount of $1000 shall be adjusted annually for inflation based on the Consumer Price Index (if the adjustment does not result in a multiple of $25, rounded down to the next multiple of $25).

(2) The eligibility income threshold of $50,000 ($60,000 for eligible senior claimants) shall be adjusted annually for inflation based on the Consumer Price Index (if the adjustment does not result in a multiple of $100, rounded down to the next multiple of $100).

(3) In the case of a negative annual inflation rate based on the Consumer Price Index, neither the credit amount of $1000 nor the eligibility income threshold of $50,000 ($60,000 for eligible senior claimants) shall be decreased.

(4) For the purposes of this subsection, the term "Consumer Price Index" means the all items index of the Consumer Price Index for All Urban Consumers for Washington-Baltimore Area, published by the Bureau of Labor Statistics of the United States Department of Labor.


(July 16, 1947, 61 Stat. 345, ch. 258, art. I, title VI, § 8; Sept. 3, 1974, 88 Stat. 1060, Pub. L. 93-407, title IV, § 451; Jan. 3, 1975, 88 Stat. 2176, Pub. L. 93-635, § 7(a)(1), (b)(1), (c)-(e); Apr. 19, 1977, D.C. Law 1-124, title IV, § 401(d)(2), 23 DCR 8749; Feb. 28, 1978, D.C. Law 2-45, § 4, 24 DCR 3614; Mar. 3, 1979, D.C. Law 2-130, § 6, 25 DCR 2517; Nov. 20, 1979, D.C. Law 3-37, § 5, 26 DCR 1564; June 11, 1982, D.C. Law 4-118, § 112, 29 DCR 1770; July 24, 1982, D.C. Law 4-131, § 108(c), (d), 29 DCR 2418; Apr. 30, 1988, D.C. Law 7-104, § 39(d), (e), 35 DCR 147; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Apr. 24, 2007, D.C. Law 16-305, § 73(e), 53 DCR 6198; Sept. 12, 2008, D.C. Law 17-231, § 41(i), 55 DCR 6758; Apr. 27, 2013, D.C. Law 19-283, § 2, 60 DCR 2307; Feb. 26, 2015, D.C. Law 20-155, § 7052(b), 61 DCR 9990; Oct. 22, 2015, D.C. Law 21-36, § 7042, 62 DCR 10905; Oct. 8, 2016, D.C. Law 21-160, § 7102, 63 DCR 10775.)

Prior Codifications

1981 Ed., § 47-1806.6.

1973 Ed., § 47-1567g.

Section References

This section is referenced in § 42-2851.02, § 47-857.01, and § 47-865.

Effect of Amendments

D.C. Law 16-305 substituted “claimants with disabilities” for “disabled claimants”, throughout the section.

D.C. Law 17-231, in subsec. (b)(5), substituted “spouse or domestic partner” for “spouse”; and, in subsec. (j)(2), substituted “spouses or domestic partners” for “husband and wife”.

The 2013 amendment by D.C. Law 19-283, in (a)(1), substituted “20% of rent” for “15% of rent” and substituted “$1,000” for “$750”; added (a)(2)(B) and (C); repealed (a)(3); substituted “Only one claimant per tax filing unit per year shall be entitled to relief under this section” for “Only 1 claimant per home and per household per year shall be entitled to relief under this section” in (b)(4); repealed (b)(5), (6), and (7); substituted “20% of the rent” for “15% of the rent” in (b)(8)(B); rewrote (j)(1); and added (r).

The 2015 amendment by D.C. Law 20-155 added “other than eligible senior claimants” in (a)(2)(C); added (a)(2A) and (b)(9); and added “($ 60,000 for eligible senior claimants)” in (r).

The 2015 amendment by D.C. Law 21-36 substituted “2013” for “2014” in (a)(2A); and substituted “ Sections 47-845, 47-845.02 and 47-845.03” for “ Section 47-845” in (e)(1).

Cross References

Real property assessments and taxes, promulgation of rules and regulations, powers of Mayor, see § 47-814.

Emergency Legislation

For temporary (90 days) amendment of D.C. Law 19-283, § 3, see § 7020 of the Fiscal Year 2014 Budget Support Emergency Act of 2013 (D.C. Act 20-130, July 30, 2013, 60 DCR 11384, 20 DCSTAT 1827).

For temporary (90 days) amendment of D.C. Law 19-283, § 3, see 7020 of the Fiscal Year 2014 Budget Support Congressional Review Emergency Act of 2013 (D.C. Act 20-204, October 17, 2013, 60 DCR 15341, 20 DCSTAT 2311).

For temporary (90 days) amendment of this section, see § 7062(b) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of this section, see § 7052(b) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of this section, as amended by D.C. Law 20-155, § 7052(b), see § 2(m) of the Fiscal Year 2015 Budget Support Clarification Emergency Act of 2014 (D.C. Act 20-461, November 6, 2014, 61 DCR 11784, 20 STAT 4368).

For temporary (90 days) amendment of this section, see § 7052(b) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

For temporary (90 days) amendment of this section, see § 2(m) of the Fiscal Year 2015 Budget Support Clarification Emergency Act of 2014 (D.C. Act 20-587, January 13, 2015, 62 DCR 1294, 21 STAT 758).

For temporary (90 days) repeal of D.C. Law 19-142 and repeal of this chapter, see § 7016(j) of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).

Temporary Legislation

For temporary (225 days) amendment of this section, see § 2(r)(4) of the Fiscal Year 2015 Budget Support Clarification Temporary Amendment Act of 2014 (D.C. Law 20-179, March 7, 2015, 62 DCR 424).

Short Title

Section 7001 of D.C. Law 20-61 provided that Subtitle A of Title VII of the act may be cited as the “Subject to Appropriations Repealers Amendment Act of 2013”.

References in Text

The definition of “adjusted gross income,” referred to as being contained in subsection (c) of § 47-1803.2 in subsection (b)(2), is now contained in subsection (b) of § 47-1803.02.

“The Rental Housing Act of 1977,” referred to in (b)(8)(A)(i), is D.C. Law 2-54, which had been codified as Chapter 34 of title 42, and has been superseded by the Rental Housing Act of 1980, D.C. Law 3-131. See also § 42-3401.03(15).

Sections 20-2101 and 20-2102, referred to near the end of subsection (f) of this section, refer to sections contained in Title 20 prior to the title’s revision by D.C. Law 3-72, effective June 24, 1980.

Editor's Notes

Definitions applicable: The definitions in § 47-803 apply to this section.

Applicability of D.C. Law 19-283: Section 3 of D.C. Law 19-283, as amended by D.C. Law 20-61, § 7020, provided that the act shall apply as of January 1, 2014.


§ 47–1806.07. Tax on residents and nonresidents — Reduction of top rate to goal of 8% or lower.

Beginning February 1, 2000, in addition to the operative rate reductions provided for in this title, the Mayor and the Council shall consider reducing the highest individual income tax rate in § 47-1806.03 to a goal of 8% or lower, if:

(1) the Comprehensive Annual Financial Report for the immediately preceding fiscal year shows that actual local source general fund revenue exceeds the original forecast of such revenue presented in the immediately preceding fiscal year’s budget submission to Congress;

(2) The Chief Financial Officer certifies that less than half of the excess local source general fund revenue for the immediately preceding fiscal year is derived from non-recurring sources;

(3) The Chief Financial Officer certifies that the nominal GDP growth is greater than or equal to 3.5%, and the real GDP growth is greater than or equal to 1.7%; and

(4) The Mayor and the Council shall consider the need for further tax reductions in conjunction with other government needs.


(Oct. 20, 1999, D.C. Law 13-38, § 2704(b), 46 DCR 6373.)

References in Text

“This title”, referred to in the introductory language of this section, is title XXVII of D.C. Law 13-38, the “Tax Parity Act of 1999”.


§ 47–1806.08. Tax on residents and nonresidents; credits; targeted historic housing credit — Definitions. [Repealed]

Repealed.


(Apr. 19, 2002, D.C. Law 14-114, § 302(b)(2), 49 DCR 1468; Mar. 14, 2007, D.C. Law 16-294, § 4, 54 DCR 1086; Sept. 18, 2007, D.C. Law 17-20, § 2302, 54 DCR 7052.)

Emergency Legislation

For temporary (90 day) repeal of section, see § 4 of Targeted Historic Preservation Assistance Congressional Review Emergency Act of 2006 (D.C. Act 16-500, October 23, 2006, 53 DCR 9046).

For temporary (90 day) repeal of section, see § 2302 of Fiscal Year 2008 Budget Support Emergency Act of 2007 (D.C. Act 17-74, July 25, 2007, 54 DCR 7549).

Short Title

Short title: Section 2301 of D.C. Law 17-20 provided that subtitle R of title II of the act may be cited as the “Targeted Historic Tax Credit Repeal Act of 2007”.

Editor's Notes

D.C. Law 17-20, § 2302, made a technical correction in the repeal of this section by D.C. Law 16-294, § 4.

Section 1101 of D.C. Law 14-114 provided: “The Mayor, pursuant to Title I of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1204; D.C. Official Code § 2-501 et seq.), shall promulgate rules to implement this act.”


§ 47–1806.08a. Tax on residents and nonresidents — Credits — Targeting housing historic credit — Allowable credit. [Repealed]

Repealed.


(Apr. 19, 2002, D.C. Law 14-114, § 302(b)(2), 49 DCR 1468; Mar. 14, 2007, D.C. Law 16-294, § 4, 54 DCR 1086; Sept. 18, 2007, D.C. Law 17-20, § 2302, 54 DCR 7052.)

Emergency Legislation

For temporary (90 day) repeal of section, see § 4 of Targeted Historic Preservation Assistance Congressional Review Emergency Act of 2006 (D.C. Act 16-500, October 23, 2006, 53 DCR 9046).

For temporary (90 day) repeal of section, see § 2302 of Fiscal Year 2008 Budget Support Emergency Act of 2007 (D.C. Act 17-74, July 25, 2007, 54 DCR 7549).


§ 47–1806.08b. Tax on residents and nonresidents — Refund of credit.

Repealed.


(Apr. 19, 2002, D.C. Law 14-114, § 302(b)(2), 49 DCR 1468; Mar. 14, 2007, D.C. Law 16-294, § 4, 54 DCR 1086; Sept. 18, 2007, D.C. Law 17-20, § 2302, 54 DCR 7052.)

Emergency Legislation

For temporary (90 day) repeal of section, see § 4 of Targeted Historic Preservation Assistance Congressional Review Emergency Act of 2006 (D.C. Act 16-500, October 23, 2006, 53 DCR 9046).

For temporary (90 day) repeal of section, see § 2302 of Fiscal Year 2008 Budget Support Emergency Act of 2007 (D.C. Act 17-74, July 25, 2007, 54 DCR 7549).


§ 47–1806.08c. Tax on residents and nonresidents — Credits — Targeted historic housing credit — Transferability of credit. [Repealed]

Repealed.


(Apr. 19, 2002, D.C. Law 14-114, § 302(b)(2), 49 DCR 1468; Mar. 14, 2007, D.C. Law 16-294, § 4, 54 DCR 1086; Sept. 18, 2007, D.C. Law 17-20, § 2302, 54 DCR 7052.)

Section References

This section is referenced in § 47-1803.02.

Emergency Legislation

For temporary (90 day) repeal of section, see § 4 of Targeted Historic Preservation Assistance Congressional Review Emergency Act of 2006 (D.C. Act 16-500, October 23, 2006, 53 DCR 9046).

For temporary (90 day) repeal of section, see § 2302 of Fiscal Year 2008 Budget Support Emergency Act of 2007 (D.C. Act 17-74, July 25, 2007, 54 DCR 7549).


§ 47–1806.08d. Tax on residents and nonresidents — Credits — Targeted historic housing credit — Lien; cancellation of credit; penalty. [Repealed]

Repealed.


(Apr. 19, 2002, D.C. Law 14-114, § 302(b)(2), 49 DCR 1468; Mar. 14, 2007, D.C. Law 16-294, § 4, 54 DCR 1086; Sept. 18, 2007, D.C. Law 17-20, § 2302, 54 DCR 7052.)

Emergency Legislation

For temporary (90 day) repeal of section, see § 4 of Targeted Historic Preservation Assistance Congressional Review Emergency Act of 2006 (D.C. Act 16-500, October 23, 2006, 53 DCR 9046).

For temporary (90 day) repeal of section, see § 2302 of Fiscal Year 2008 Budget Support Emergency Act of 2007 (D.C. Act 17-74, July 25, 2007, 54 DCR 7549).


§ 47–1806.08e. Tax on residents and nonresidents — Credits — Targeted historic housing credit — Applicability to nonprofit corporations. [Repealed]

Repealed.


(Apr. 19, 2002, D.C. Law 14-114, § 302(b)(2), 49 DCR 1468; Mar. 14, 2007, D.C. Law 16-294, § 4, 54 DCR 1086; Sept. 18, 2007, D.C. Law 17-20, § 2302, 54 DCR 7052.)

Emergency Legislation

For temporary (90 day) repeal of section, see § 4 of Targeted Historic Preservation Assistance Congressional Review Emergency Act of 2006 (D.C. Act 16-500, October 23, 2006, 53 DCR 9046).

For temporary (90 day) repeal of section, see § 2302 of Fiscal Year 2008 Budget Support Emergency Act of 2007 (D.C. Act 17-74, July 25, 2007, 54 DCR 7549).


§ 47–1806.08f. Tax on residents and nonresidents — Credits — Targeted historic housing credit — Cap; administrative costs. [Repealed]

Repealed.


(Apr. 19, 2002, D.C. Law 14-114, § 302(b)(2), 49 DCR 1468; Oct. 20, 2005, D.C. Law 16-33, § 2212(b), 52 DCR 7503; Mar. 14, 2007, D.C. Law 16-294, § 4, 54 DCR 1086; Sept. 18, 2007, D.C. Law 17-20, § 2302, 54 DCR 7052.)

Effect of Amendments

D.C. Law 16-33, rewrote section, which had read:

“The Mayor may approve up to $1,250,000 of credits under § 47-1806.08a each fiscal year from fiscal year 2003 through fiscal year 2006.”

Emergency Legislation

For temporary (90 day) amendment of section, see § 2212(b) of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).

For temporary (90 day) repeal of section, see § 4 of Targeted Historic Preservation Assistance Congressional Review Emergency Act of 2006 (D.C. Act 16-500, October 23, 2006, 53 DCR 9046).

For temporary (90 day) repeal of section, see § 2302 of Fiscal Year 2008 Budget Support Emergency Act of 2007 (D.C. Act 17-74, July 25, 2007, 54 DCR 7549).

Short Title

Short title of subtitle M of title II of Law 16-33: Section 2211 of D.C. Law 16-33 provided that subtitle M of title II of the act may be cited as the Targeted Historic Housing Tax Credit Act of 2005.

Editor's Notes

D.C. Law 17-20, § 2302, made a technical correction in the repeal of this section by D.C. Law 16-294, § 4.


§ 47–1806.08g. Tax on residents and nonresidents — Credits — Targeted historic housing credit — Applicability date; Mayoral certification. [Repealed]

Repealed.


(Apr. 19, 2002, D.C. Law 14-114, § 302(b)(2), 49 DCR 1468; Mar. 14, 2007, D.C. Law 16-294, § 4, 54 DCR 1086; Sept. 18, 2007, D.C. Law 17-20, § 2302, 54 DCR 7052.)

Emergency Legislation

For temporary (90 day) repeal of section, see § 4 of Targeted Historic Preservation Assistance Congressional Review Emergency Act of 2006 (D.C. Act 16-500, October 23, 2006, 53 DCR 9046).

For temporary (90 day) repeal of section, see § 2302 of Fiscal Year 2008 Budget Support Emergency Act of 2007 (D.C. Act 17-74, July 25, 2007, 54 DCR 7549).


§ 47–1806.09. Tax on residents and nonresidents; credits; lower income, long-term homeowner credit — Definitions.

For the purposes of §§ 47-1806.09 through 47-1806.09f, the term:

(1)(A) “Area median income” means:

(i) For a household of 4 persons, the area median income for a household of 4 persons in the Washington Metropolitan Statistical Area as set forth in the periodic calculation provided by the United States Department of Housing and Urban Development;

(ii) For a household of 3 persons, 90% of the area median income for a household of 4 persons;

(iii) For a household of 2 persons, 80% of the area median income for a household of 4 persons;

(iv) For a household of one person, 70% of the area median income for a household of 4 persons;

(v) For a household of more than 4 persons, the area median income for a household of 4 persons, increased by 10% of the area median income for a family of 4 persons for each household member exceeding 4 persons (e.g., the area median income for a family of 5 shall be 110% of the area median income for a family of 4; the area median income for a household of 6 shall be 120% of the area median income for a family of 4).

(B) Any percentage of household income referenced in §§ 47-1806.09 through 47-1806.09e (e.g., 80% of household income) shall be determined through a direct mathematical calculation and shall not take into account any adjustments made by the United States Department of Housing and Urban Development for the purposes of the programs it administers. A determination required by this subparagraph shall be calculated for the fiscal year ending in the tax year for which the credit is claimed.

(2) “Eligible residence” means a real property receiving the homestead deduction under § 47-850 or a unit within a cooperative housing association for which the cooperative housing association is receiving the homestead deduction under § 47-850.01.

(3) “Eligible resident” means a resident, as defined in § 47-1801.04(17), who:

(A)(i) Owns an eligible residence as his principal place of residence and has resided in the eligible residence for at least 7 consecutive years immediately prior to the last day of the tax year; or

(ii) Is a shareholder or member of a cooperative housing association, occupies by right an eligible residence by reason of his ownership of a stock or membership certificate, proprietary lease, or other evidence of membership in the cooperative housing association, and has resided in the eligible residence as his or her principal place of residence for at least 7 consecutive years immediately prior to the last day of the tax year; and

(B) Has a household income equal to or less than 50% of the area median income.

(4) “Household income” means the total “adjusted gross income”, as defined in § 47-1803.02(b), of every member of the household.


(Apr. 19, 2002, D.C. Law 14-114, § 401(b), 49 DCR 1468; Oct. 19, 2002, D.C. Law 14-213, §§ 33(s), 35(a), 49 DCR 8140; Dec. 7, 2004, D.C. Law 15-205, § 1172(b), 51 DCR 8441; Mar. 2, 2007, D.C. Law 16-191, § 77, 53 DCR 6794.)

Section References

This section is referenced in § 47-1806.09f.

Effect of Amendments

D.C. Law 14-213, in the introductory paragraph, substituted “§ 47-1806.09f” for “§ 4-1806.09f”; and made a technical change in the enacting clause of D.C. Law 14-114, § 401(b), which resulted in no change in text.

D.C. Law 15-205 added a new sentence at the end of par. (1)(B); in par. (2), substituted “real property receiving the homestead deduction under § 47-850 or a unit within a cooperative housing association for which the cooperative housing association is receiving the homestead deduction under § 47-850.01.” for “Class 1 property as defined in § 47-813(c-4)(1)”; in par. (3), substituted “resident, as defined in § 47-1801.04(17)” for “taxpayer, as defined in § 47-1801.04(7)”, and rewrote subpar. (A); and, in par. (4), substituted “means the total ‘adjusted gross income,’ as defined in § 47-1803.02(b), of every member of the household” for “have the same meaning as ‘household income’ in § 47-1806.06(b)(2)”. Prior to amendment, subpar. (A) of par. (3) had read as follows: “(A) Owns an eligible residence as his or her principal place of residence and has resided in the eligible residence for at least 7 years; and,”.

D.C. Law 16-191, in par. (4), validated a previously made technical correction.

Emergency Legislation

For temporary (90 day) amendment of section, see § 2(b) of Lower Income, Long-term Homeowner Credit Administration Emergency Act of 2004 (D.C. Act 15-421, May 10, 2004, 51 DCR 5174).

For temporary (90 day) amendment of section, see § 1172(b) of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).

For temporary (90 day) amendment of section, see § 1172(b) of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR).

For temporary (90 day) amendment of section, see § 10 of Finance and Revenue Technical Amendments Second Emergency Amendment Act of 2006 (D.C. Act 16-585, December 28, 2006, 54 DCR 340).

Temporary Legislation

For temporary (225 day) amendment of section, see § 2(b) of Lower Income, Long-Term Homeowner Credit Administration Temporary Act of 2004 (D.C. Law 15-179, September 8, 2004, law notification 51 DCR 9221).

Short Title

Short title of subtitle P of title I of Law 15-205: Section 1171 of D.C. Law 15-205 provided that subtitle P of title I of the act may be cited as Lower Income, Long-Term Homeowner Credit Administration Act of 2004.

Editor's Notes

Section 1101 of D.C. Law 14-114 provided: “The Mayor, pursuant to Title I of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1204; D.C. Official Code § 2-501 et seq.), shall promulgate rules to implement this act.”


§ 47–1806.09a. Tax on residents and nonresidents; credits; lower income, long-term homeowner credit — Allowable credit.

(a) Subject to subsection (b) of this section and § 47-1806.09b, an eligible resident shall be allowed a credit against the tax imposed by § 47-1806.03 computed as follows: the amount of the real property tax imposed on the eligible residence under § 47-811 during the real property tax year ending in the tax year for which the credit is allowed, less 105% of the real property tax under § 47-811 imposed on the eligible residence under § 47-811 during the prior real property tax year.

(b) If an eligible residence is a unit within a cooperative housing association, the credit shall be computed in accordance with subsection (a) of this section using the net amount of real property tax apportioned to the eligible residence by the cooperative housing association as the amount of real property tax imposed. The cooperative housing association shall provide to the eligible resident upon his request data concerning the amount of real property taxes apportioned to his or her eligible residence by the cooperative housing association for the real property tax year ending in the tax year for which the credit is allowed and the prior real property tax year, accounting for real property tax credits and deductions passed through to the eligible resident to include the homestead deduction under § 47-850.01 and the senior citizen deduction under § 47-863.


(Apr. 19, 2002, D.C. Law 14-114, § 401(b), 49 DCR 1468; Dec. 7, 2004, D.C. Law 15-205, § 1172(c), 51 DCR 8441.)

Section References

This section is referenced in § 47-1806.09b, § 47-1806.09e, and § 47-1806.09f.

Effect of Amendments

D.C. Law 15-205, in subsec. (a), substituted “§ 47-1806.09b” for “§ 47-1806.08b” and substituted “prior real property tax year” for “prior tax year”; and rewrote subsec. (b) which had read as follows: “(b) The credit allowed by this section shall be allowed for tax years beginning on or after October 1, 2002.”

Emergency Legislation

For temporary (90 day) amendment of section, see § 2(c) of Lower Income, Long-term Homeowner Credit Administration Emergency Act of 2004 (D.C. Act 15-421, May 10, 2004, 51 DCR 5174).

For temporary (90 day) amendment of section, see § 1172(c) of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).

For temporary (90 day) amendment of section, see § 1172(c) of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR).

Temporary Legislation

For temporary (225 day) amendment of section, see § 2(c) of Lower Income, Long-Term Homeowner Credit Administration Temporary Act of 2004 (D.C. Law 15-179, September 8, 2004, law notification 51 DCR 9221).


§ 47–1806.09b. Tax on residents and nonresidents; credits; lower income, long-term homeowner credit — Application for credit.

(a) To receive the credit allowed by § 47-1806.09a, the eligible resident shall submit, with the resident’s District of Columbia income tax return, an application containing any forms and information prescribed by the Mayor. If the resident is not required to file a District of Columbia income tax return, the resident shall submit an application containing any forms and information in a manner that the Mayor shall prescribe.

(b) If the resident does not submit the application required by subsection (a) of this section within 12 months after the last day of the tax year for which the credit may first be requested, the credit shall not be allowed.

(c) An eligible resident may apply for the credit allowed by § 47-1806.09a or the credit allowed by § 47-1806.08a [repealed], but shall not be eligible for both tax credits. No person may apply for any of the credits if another person in the household has applied for any of the credits.

(d) An eligible resident in a household may seek a pro rata contribution from the eligible resident who receives the credit. The eligible resident who does not receive the credit shall not have any right against the District of Columbia to claim or recover the credit or any portion thereof, whether at law or in equity.

(e) Notwithstanding subsection (a) of this section, an eligible resident shall not be required to submit an application with the eligible resident’s 2003 District of Columbia personal income tax return.


(Apr. 19, 2002, D.C. Law 14-114, § 401(b), 49 DCR 1468; Dec. 7, 2004, D.C. Law 15-205, § 1172(d), 51 DCR 8441.)

Section References

This section is referenced in § 47-1806.09a, § 47-1806.09c, and § 47-1806.09d.

Effect of Amendments

D.C. Law 15-205, in subsec. (a), substituted “§ 47-1806.09a” for “§ 47-1806.09b”; in subsec. (b), substituted “tax” for “taxable”; in subsec. (c), added a new sentence at the end; and added subsecs. (d) and (e).

Emergency Legislation

For temporary (90 day) amendment of section, see § 2(d) of Lower Income, Long-term Homeowner Credit Administration Emergency Act of 2004 (D.C. Act 15-421, May 10, 2004, 51 DCR 5174).

For temporary (90 day) amendment of section, see § 1172(d) of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).

For temporary (90 day) amendment of section, see § 1172(d) of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR 11725).

Temporary Legislation

For temporary (225 day) amendment of section, see § 2(d) of Lower Income, Long-Term Homeowner Credit Administration Temporary Act of 2004 (D.C. Law 15-179, September 8, 2004, law notification 51 DCR 9221).


§ 47–1806.09c. Tax on residents and nonresidents; credits; lower income, long-term homeowner credit — Correction of errors.

If, pursuant to an audit or other review of an application filed under § 47-1806.09b, the Mayor determines the amount of the credit has been incorrectly computed, the Mayor shall determine the correct amount of the credit and notify the eligible resident in accordance with the procedures set forth in § 47-1812.05.


(Apr. 19, 2002, D.C. Law 14-114, § 401(b), 49 DCR 1468.)


§ 47–1806.09d. Tax on residents and nonresidents; credits; lower income, long-term homeowner credit — Fraud.

(a) If the Mayor determines, before the credit is allowed, that an application filed under § 47-1806.09b was filed with fraudulent intent, the Mayor shall deny the application.

(b) Repealed.

(c) The remedies authorized by this section shall be in addition to any other remedy allowed by law.


(Apr. 19, 2002, D.C. Law 14-114, § 401(b), 49 DCR 1468; Dec. 7, 2004, D.C. Law 15-205, § 1172(e), 51 DCR 8441.)

Effect of Amendments

D.C. Law 15-205 repealed subsec. (b) which had read as follows: “(b) If the Mayor determines, after a credit has been allowed against income taxes otherwise payable to the District, that an application filed under § 47-1806.09c was filed with fraudulent intent, the credit shall be canceled, the amount of the credit allowed shall be assessed against the applicant, and the amount assessed may be collected in the manner provided by § 47-412.”

Emergency Legislation

For temporary (90 day) amendment of section, see § 2(e) of Lower Income, Long-term Homeowner Credit Administration Emergency Act of 2004 (D.C. Act 15-421, May 10, 2004, 51 DCR 5174).

For temporary (90 day) amendment of section, see § 1172(e) of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).

For temporary (90 day) amendment of section, see § 1172(e) of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR 11725).

Temporary Legislation

For temporary (225 day) amendment of section, see § 2(e) of Lower Income, Long-Term Homeowner Credit Administration Temporary Act of 2004 (D.C. Law 15-179, September 8, 2004, law notification 51 DCR 9221).


§ 47–1806.09e. Tax on residents and nonresidents; credits; lower income, long-term homeowner credit — Carryover of credit.

If the credit allowed under § 47-1806.09a exceeds the total income tax liability of the eligible resident under § 47-1806.03 for the tax year in which the credit is allowed, the eligible resident may claim a refund in the amount of the excess.


(Apr. 19, 2002, D.C. Law 14-114, § 401(b), 49 DCR 1468; Dec. 7, 2004, D.C. Law 15-205, § 1172(f), 51 DCR 8441.)

Effect of Amendments

D.C. Law 15-205 substituted “§ 47-1806.09a” for “§ 47-1806.08a” and substituted “tax” for “taxable”.

Emergency Legislation

For temporary (90 day) amendment of section, see § 2(f) of Lower Income, Long-term Homeowner Credit Administration Emergency Act of 2004 (D.C. Act 15-421, May 10, 2004, 51 DCR 5174).

For temporary (90 day) amendment of section, see § 1172(f) of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).

For temporary (90 day) amendment of section, see § 1172(f) of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR 11725).

Temporary Legislation

For temporary (225 day) amendment of section, see § 2(f) of Lower Income, Long-Term Homeowner Credit Administration Temporary Act of 2004 (D.C. Law 15-179, September 8, 2004, law notification 51 DCR 9221).


§ 47–1806.09f. Tax on residents and nonresidents; credits; lower income, long-term homeowner credit — Applicability date; Mayoral certification.

(a) Sections 47-1806.09 through 47-1806.09f shall apply for the income tax years beginning after December 31, 2002.

(b) An eligible resident shall apply for the tax credit under § 47-1806.09a using an application form to be developed by the Office of Tax and Revenue. For tax year 2003, this form shall be developed by the Chief Financial Officer by April 1, 2004.


(Apr. 19, 2002, D.C. Law 14-114, § 401(b), 49 DCR 1468; Dec. 7, 2004, D.C. Law 15-205, § 1172(g), 51 DCR 8441.)

Effect of Amendments

D.C. Law 15-205 rewrote subsec. (b) which had read as follows: “(b) The Mayor shall certify to the Office of Tax and Revenue and to each owner of each property that the owner is an eligible resident, that the property is an eligible residence qualified for the tax credit allowed under § 47-1806.09a, and the dollar amount of the improvements to the property qualifying for the credit. The certification shall specify the record owner; address; full legal description; and the dollar amount of the qualified improvements under this section. The certification shall be delivered to both the qualified property owner and Office of Tax and Revenue on or before the first day the tax year in which the credit is first claimed. In addition, the certification shall be attached to the owner’s District of Columbia income tax return to claim the credit.”

Emergency Legislation

For temporary (90 day) amendment of section, see § 2(b) of Low-income, Long-Term Homeowner’s Protection Clarification Emergency Act of 2004 (D.C. Act 15-380, February 27, 2004, 51 DCR 2649).

For temporary (90 day) amendment of section, see § 2(g) of Lower Income, Long-term Homeowner Credit Administration Emergency Act of 2004 (D.C. Act 15-421, May 10, 2004, 51 DCR 5174).

For temporary (90 day) amendment of section, see § 1172(g) of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).

For temporary (90 day) amendment of section, see § 1172(g) of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR 11725).

Temporary Legislation

For temporary (225 day) amendment of section, see § 2(b) of Low-Income, Long-Term Homeowner’s Protection Clarification Temporary Act of 2004 (D.C. Law 15-161, May 18, 2004, law notification 51 DCR 5701).

For temporary (225 day) amendment of section, see § 2(g) of Lower Income, Long-Term Homeowner Credit Administration Temporary Act of 2004 (D.C. Law 15-179, September 8, 2004, law notification 51 DCR 9221).


§ 47–1806.10. Income averaging — Employment discrimination.

(a) For the purposes of this section, the term:

(1) “Average annual net backpay and frontpay amount” means the amount equal to the excess of employment discrimination backpay and frontpay over the amount of deductions that would have been allowable but for subsection (b)(1)(B) of this section, divided by the number of years in the backpay period and frontpay period.

(2) “Backpay” means amounts includible in gross income in the taxable year as compensation which is attributable to services performed, or that would have been performed, but for a claimed violation of law, as an employee, former employee, or prospective employee in a prior taxable year for the taxpayer’s employer, former employer, or prospective employer.

(3) “Backpay period” means the period during which services are performed, or would have been performed, to which backpay is attributable. If the period is not equal to a whole number of taxable years, the period shall be increased to the next highest number of whole taxable years.

(4) “Employment discrimination backpay or frontpay” means backpay or frontpay receivable, whether as a lump sum or periodic payments, on account of a claim of unlawful employment discrimination.

(5) “Frontpay” means amounts includible in gross income in the taxable year as compensation which is attributable to employment that would have been performed but for a claimed violation of law, in a subsequent taxable year, and which are:

(A) Ordered, recommended, or approved by any government entity to satisfy a claim for violation of law; or

(B) Received from the settlement of such a claim.

(6) “Frontpay period” means the period of foregone employment to which frontpay is attributable. If the period is not equal to a whole number of taxable years, the period shall be increased to the next highest number of whole taxable years.

(b) If employment discrimination backpay or frontpay is received during a taxable year, the tax imposed under § 47-1806.03 for the taxable year shall not exceed the sum of:

(1) The tax which would be so imposed if:

(A) No amount of backpay or frontpay were included in gross income for the year; and

(B) No deductions were allowed for the year for expenses (otherwise allowable as a deduction to the taxpayer for the year) in connection with making or prosecuting any claim of unlawful employment discrimination by or on behalf of the taxpayer; and

(2) The product of:

(A) The number of years in the backpay period and frontpay period; and

(B) The amount by which the tax determined under paragraph (1) of this subsection would increase if the amount on which such tax is determined were increased by the average annual net backpay and frontpay amount.


(June 25, 2002, D.C. Law 14-165, § 2(b)(2), 49 DCR 4261.)

Section References

This section is referenced in § 47-1803.02.

Editor's Notes

Section 3 of D.C. Law 14-165 provided that section 2 shall apply to taxable years beginning on January 1, 2001.


§ 47–1806.11. Tax on residents and nonresidents — Credits — Energy conservation credit. [Repealed]

Repealed.


(May 12, 2006, D.C. Law 16-97, § 2, 53 DCR 1663; Mar. 14, 2007, D.C. Law 16-294, § 18(b), 54 DCR 1086.)

Cross References

Economic development zones, eligibility for tax incentives, see § 6-1504.

“Feepayer” defined, see § 47-2751.

Income and franchise taxes, gross income, items included and excluded, see § 47-1803.02.

Income and franchise taxes, gross income, same—deductions, exceptions, see § 47-1803.03.

Income and franchise taxes, returns, same—filing, fiscal year, filing dates, see § 47-1805.03.

Tax on unincorporated businesses, “unincorporated business” defined, see § 47-1808.01.

Emergency Legislation

For temporary (90 day) addition, see § 2(b) of Employment of Returning Veteran’s Tax Credit Emergency Act of 2008 (D.C. Act 17-654, January 6, 2009, 56 DCR 933).

Temporary Legislation

Section 2(b) of D.C. Law 17-384 added a section to read as follows:

§ 47-1806.12. Tax credit for hiring qualified veterans.

“(a) For the purposes of this section, the term:

“(1) ‘Armed Forces’ shall include any branch of the United States Military, including the Army, Navy, Marines, Air Force, Coast Guard, or any National Guard or reserve deployment lasting 6 continuous months or longer.

“(2) ’Qualified veteran’ means an individual subject to the District’s personal income tax who:

“(A) Has previously served in a branch of the Armed Forces and who was honorably or generally discharged;

“(B) Is not currently employed in a facility owned or operated by the District business with an exemption under § 47-4605;

“(C) Is hired to fill a position of indefinite duration consisting of a minimum of 35 hours per week for not less than 48 weeks per year;

“(D) Is hired within 5 years after being discharged from the Armed Forces or within 2 years of a continuous 6-month National Guard deployment;

“(E) Is a District resident at the time of hiring and maintains District residency for the duration of the 2-year tax credit period; and

“(F) Is not currently employed in a facility owned or operated by the District business seeking the tax credit under this section.

“(b) For taxable years beginning on or after January 1, 2009, an employer shall be allowed a credit against the tax imposed by § 47-1806.03 in an amount equal to 10% of the wages paid by the employer to a qualified veteran during the first 24 calendar months in which the employer employs the qualified veteran. The credit under this section shall not exceed $5,000 in the aggregate for each qualified veteran who is employed.

“(c) The maximum annual credit allowed under this section shall not exceed the lesser of:

“(1) Ten percent of the wages paid to a qualified veteran during the tax year in which the credit is claimed;

“(2) The total income taxes imposed on the business during the tax year in which the credit is sought; or

“(3) A total of $2,500 for each qualified veteran.

“(d) The credit under subsection (b) of this section shall not be valid:

“(1) For any wages paid in a calendar month in which the employer has not employed the qualified veteran for at least 90 hours;

“(2) If the employer pays the qualified veteran less than the greater of the legal minimum wage or the wage the employer pays other employees in similar jobs;

“(3) If the employer accords the qualified veteran lesser benefits or rights than the employer accords other employees in similar jobs;

“(4) If the qualified veteran was employed as the result of the displacement, other than for cause, of another employee, or as the result of a strike or lockout, a layoff in which other employees are awaiting recall, or a reduction of the regular wages, benefits, or rights of other employees in similar jobs;

“(5) If the employer does not meet, with respect to the employment of the qualified veteran, all federal and District laws and regulations, including those concerning health, safety, child labor, work/hour, and equal employment opportunity;

“(6) If the qualified veteran is a member of the board of directors of the business, directly or indirectly owns a majority of its stock, or is related to a member of the board of directors or a majority stockholder as a spouse or as any relative listed in the definition of dependent in section 152 of the Internal Revenue Code of 1986 without regard to source of income; or

“(7) If the qualified veteran moves his or her residence outside the District of Columbia during the 24-month period.”.

Section 5(b) of D.C. Law 17-384 provided that the act shall expire after 225 days of its having taken effect.

Editor's Notes

Section 3 of D.C. Law 16-97 provided that section 2 shall apply as of January 1, 2006.


§ 47–1806.12. Tax on residents and non-residents — Credits — Alternative fuel infrastructure credit.

(a) Beginning with the taxable year after December 31, 2013, through the taxable year ending December 31, 2026, there shall be allowed against the tax imposed on an eligible applicant by § 47-1806.03 a credit in the amount of 50% of the equipment and labor costs directly attributable to the purchase and installation of alternative fuel storage and dispensing or charging equipment on a qualified alternative fuel vehicle refueling property or in a qualified private residence; provided, that the credit shall not exceed:

(1) For a qualified private residence, $1,000 per vehicle charging station; or

(2) For a qualified alternative fuel vehicle refueling property, $10,000 per qualified alternative fuel vehicle refueling property or vehicle charging station.

(b) The equipment and labor costs for which a tax credit may be claimed under this section shall not include costs associated with the:

(1) Purchase of land, or access to land, to be used as a qualified alternative fuel vehicle refueling property;

(2) Purchase of an existing qualified alternative fuel vehicle refueling property; or

(3) Construction or purchase of any structure.

(c) The credit claimed under this section in any one tax year may not exceed the taxpayer’s tax liability under § 47-1806.03 for that year.

(d) If the amount of the tax credit permitted under this section exceeds the tax otherwise due under § 47-1806.03, the amount of the credit not used may be carried forward for up to 2 tax years. The credit shall not be refundable.

(e) If the alternative fuel storage and dispensing equipment or charging equipment on a qualified alternative fuel vehicle refueling property is no longer used to dispense or sell alternative fuel to the public, any unused tax credit shall be forfeited and the taxpayer may not claim a tax credit for the portion of the tax year after the date on which the alternative fuel storage and dispensing equipment or charging equipment was no longer used to dispense or sell alternative fuel to the public.

(f) For the purposes of this section, the term:

(1) “Alternative fuel” means a fuel used to power a motor vehicle that consists of one or more of the following:

(A) At least 85% ethanol;

(B) Natural gas;

(C) Compressed natural gas;

(D) Liquefied natural gas;

(E) Liquefied petroleum gas;

(F) Biodiesel, excluding kerosene;

(G) Electricity provided by a vehicle-charging station; or

(H) Hydrogen.

(2) “Eligible applicant” means a resident who is an owner or lessee of a qualified alternative fuel vehicle refueling property or a qualified private residence.

(3) “Qualified alternative fuel vehicle refueling property” means a property in the District that contains equipment available for use by the public for storing and dispensing alternative fuel, including charging electrically.

(4) “Qualified private residence” means a property that is the dwelling of a person that has a vehicle-charging station.


(Feb. 26, 2015, D.C. Law 20-155, § 7072(b), 61 DCR 9990.)

Emergency Legislation

For temporary (90 days) addition of this section, see § 7082(b) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) addition of this section, see § 7072(b) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) addition of this section, see § 7072(b) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).


§ 47–1806.13. Tax on residents and non-residents — Credits — Alternative fuel vehicle conversion credit.

(a) Beginning with the taxable year after December 31, 2013, through the taxable year ending December 31, 2026, there shall be allowed against the tax imposed by § 47-1806.03 a credit in the amount of 50% of the equipment and labor costs directly attributable to the cost to convert a motor vehicle licensed in the District that operates on petroleum diesel or petroleum derived gasoline to a motor vehicle that operates on an alternative fuel, not to exceed $19,000 per vehicle.

(b) The credit claimed under this section in any one tax year may not exceed the taxpayer’s tax liability under § 47-1806.03 for that year. The credit shall not be refundable.

(c) For the purposes of this section, the term “alternative fuel” shall have the same meaning as provided in § 47-1806.12(f)(1).


(Feb. 26, 2015, D.C. Law 20-155, § 7072(b), 61 DCR 9990.)

Emergency Legislation

For temporary (90 days) addition of this section, see § 7082(b) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) addition of this section, see § 7072(b) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) addition of this section, see § 7072(b) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).


§ 47–1806.14. Tax on residents and nonresidents — Credits — Tax credit for farm to food donations. [Repealed]

[Repealed].


(Apr. 30, 2015, D.C. Law 20-248, § 201(c)(2), 62 DCR 1504; Apr. 7, 2017, D.C. Law 21-257, § 3(b)(2), 64 DCR 2049.)


§ 47–1806.15. Early learning tax credit.

(a) For the purposes of this section, the term:

(1) "Child development facility" shall have the same meaning as provided in § 7-2031(3).

(2) "Consumer Price Index" means the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor, or any successor agency.

(3) "Eligible child" means a dependent, claimed by a taxpayer, who has not reached the age of 4 years by September 30 of the taxable year.

(4) "Eligible child care expenses" means payments made by a taxpayer to a child development facility for child care services of an eligible child during the taxable year but does not include any payments for child care services provided after August 31 of the taxable year of an eligible child who meets the age requirement for enrollment under § 38-273.02(a).

(b)(1) For taxable years beginning after December 31, 2017, a taxpayer shall be allowed a credit against the tax imposed under this subchapter for eligible child care expenses paid by the taxpayer.

(2) The amount of the credit shall be the lesser of the total amount of all eligible child care expenses paid by the taxpayer in the taxable year or $1,000 per eligible child.

(3) The credit claimed under this section in a taxable year may exceed the taxpayer's tax liability under this subchapter for that taxable year and shall be refundable to the taxpayer claiming the credit.

(c) In the case of a return made for a fractional part of a taxable year, the credit shall be reduced to an amount that bears the same ratio to the full credit provided as the number of months in the period for which the return is made to 12 months.

(d) Notwithstanding subsection (b) of this section, a taxpayer shall not be eligible to receive a credit under this section if:

(1) The taxpayer does not claim the eligible child as a dependent on the taxpayer's federal and District income tax returns for that taxable year;

(2) A person other than the taxpayer claimed the eligible child as a dependent on his or her federal and District income tax returns for that taxable year;

(3) Any child care subsidies authorized under Chapter 4 of Title 4 during the taxable year are received or paid on behalf of an eligible child of the taxpayer;

(4) A person other than the taxpayer received a credit under this section for the same taxable year for the same eligible child; or

(5) The taxpayer's District taxable income for the taxable year exceeds the following amounts for taxable year 2018 and thereafter, adjusted annually for inflation based on the Consumer Price Index:

(A) Single and head of household: $750,000;

(B) Married filing jointly: $750,000; or

(C) Married filing separately: $375,000.

(e) The Chief Financial Officer may issue rules regarding the records required to be maintained and provided by a taxpayer and a child development facility to substantiate any credits claimed under this section.

(f) The credit under this section shall not be allowed for taxable years beginning after December 31, 2018.


(Oct. 30, 2018, D.C. Law 22-168, § 7262(b), 65 DCR 9388.)

Applicability

Section 7263 of D.C. Law 22-168 provided that the creation of this section by section 7262(b) of D.C. Law 22-168 shall apply as of January 1, 2018.

Emergency Legislation

For temporary (90 days) creation of this section, see § 7262(b) of Fiscal Year 2019 Budget Support Congressional Review Emergency Act of 2018 (D.C. Act 22-458, Oct. 3, 2018, 65 DCR 11212).

For temporary (90 days) creation of this section, see § 7262(b) of Fiscal Year 2019 Budget Support Emergency Act of 2018 (D.C. Act 22-434, July 30, 2018, 65 DCR 8200).


§ [47-1806.16]. Tax on residents and nonresidents - Credits - Tax credit for food donations. [Not Funded]

Not Funded.


(Feb. 22, 2019, D.C. Law 22-212, § 101(b), 65 DCR 12927.)

Applicability

Applicability of D.C. Law 22-212: § 301 of D.C. Law 22-212 provided that the creation of this section by § 101(b) of D.C. Law 22-212 is subject to the inclusion of the law’s fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.