Code of the District of Columbia

Subchapter VII. Tax on Corporations and Financial Institutions.


§ 47–1807.01. Tax on corporations — Definitions.

For purposes of this subchapter, the term:

(1) “Corporation” shall, for taxable years beginning after December 31, 1980, include financial institutions.

(2) “Taxable income” means the amount of net income derived from sources within the District within the meaning of §§ 47-1810.01 to 47-1810.03.

(3) “Taxable period” means a taxable year or a portion of a taxable year.


(July 16, 1947, 61 Stat. 345, ch. 258, art. I, title VII, § 1; Sept. 26, 1984, D.C. Law 5-113, § 302(a)(1), 31 DCR 3974; Oct. 1, 1987, D.C. Law 7-29, § 2(g)(1), 34 DCR 5097; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-1807.1.

1973 Ed., § 47-1571.

Section References

This section is referenced in § 6-1504 and § 47-1801.04.

Editor's Notes

Mayor authorized to issue rules: See second paragraph of note to § 47-2601.


§ 47–1807.02. Tax on corporations — Levy and rates.

(a) Except as exempted under subchapter II of this chapter, for the privilege of carrying on or engaging in any trade or business within the District and of receiving income from sources within the District, there is levied:

(1) For 1 taxable year beginning after December 31, 1974, a tax at the rate of 12% upon the taxable income of every corporation, whether domestic or foreign;

(2) For the taxable years beginning after December 31, 1975, a tax at the rate of 9% upon the taxable income of every corporation, whether domestic or foreign, except that, effective October 1, 1984, the rate of tax shall be 10% upon the taxable income for any taxable period, except that for taxable years beginning after December 31, 1994, the rate of tax shall be 9.5%;

(3) For the taxable years beginning after December 31, 2002, a tax at the rate of 9.5% upon the taxable income of every corporation, whether domestic or foreign.

(3A) A surtax at the rate of 2.5% on the tax determined under paragraph (2) or (3) of this subsection, as applicable, for any tax period beginning after September 30, 1992.

(3B) A surtax at the rate of 2.5%, separate from and in addition to, the surtax imposed by paragraph (3A) of this subsection, on the tax determined under paragraph (2) or (3) of this subsection, as applicable, for any tax period beginning after September 30, 1994.

(4) For the taxable years beginning after December 31, 2003, a tax at the rate of 9.975% upon the taxable income of every corporation, whether domestic or foreign.

(5) For the taxable year beginning after December 31, 2014, but before January 1, 2016, a tax at the rate of 9.4% upon the taxable income of every corporation, whether domestic or foreign;

(6) For the taxable year beginning after December 31, 2015, but before January 1, 2017, a tax at the rate of 9.2% upon the taxable income of every corporation, whether domestic or foreign;

(7) For the taxable year beginning after December 31, 2016, but before January 1, 2018, a tax at the rate of 9.0% upon the taxable income of every corporation, whether domestic or foreign; and

(8) For taxable years beginning after December 31, 2017, a tax at the rate of 8.25% upon the taxable income of every corporation, whether domestic or foreign.

(b) The minimum tax payable under this section shall be $250. If District gross receipts are greater than $1 million, the minimum tax payable shall be $1,000. Corporations or financial institutions including International Banking Facilities shall not be exempt from the minimum tax payable under this section even if the business or source income is exempt under other provisions of this chapter.

(c) The taxes imposed by this section shall, during the 3 tax years beginning after June 30, 1981, be subject to the transition rules provided in § 47-2507.


(July 16, 1947, 61 Stat. 345, ch. 258, art. I, title VII, § 2; Aug. 2, 1968, 82 Stat. 612, Pub. L. 90-450, title II, § 202(a); Oct. 31, 1969, 83 Stat. 178, Pub. L. 91-106, title VI, § 604(a)(1); Dec. 15, 1971, 85 Stat. 653, Pub. L. 92-196, title IV, §§ 401, 403; Oct. 21, 1975, D.C. Law 1-23, title VI, § 603, 22 DCR 2111; July 27, 1976, D.C. Law 1-77, § 2, 23 DCR 1218; Mar. 16, 1978, D.C. Law 2-58, § 201, 24 DCR 5765; Sept. 13, 1980, D.C. Law 3-95, § 105(b), 27 DCR 3509; Sept. 17, 1982, D.C. Law 4-150, § 104, 29 DCR 3377; June 22, 1983, D.C. Law 5-14, § 902, 30 DCR 2632; Sept. 26, 1984, D.C. Law 5-113, § 302(a)(1), 31 DCR 3974; Oct. 1, 1987, D.C. Law 7-29, § 2(g)(2), 34 DCR 5097; July 25, 1989, D.C. Law 8-17, § 2(d), 36 DCR 4160; June 14, 1994, D.C. Law 10-128, § 103(c), 41 DCR 2096; Sept. 28, 1994, D.C. Law 10-188, § 301(a)(1), 41 DCR 5333; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Oct. 20, 1999, D.C. Law 13-38,§ 2702(i), 46 DCR 6373; Apr. 12, 2000, D.C. Law 13-91, § 168, 47 DCR 520; Oct. 3, 2001, D.C. Law 14-28, § 4102, 48 DCR 6981; Oct. 1, 2002, D.C. Law 14-190, § 802(c), 49 DCR 6968; June 5, 2003, D.C. Law 14-307, § 1002(a), 49 DCR 11664; Sept. 14, 2011, D.C. Law 19-21, § 8072(a), 58 DCR 6226; Feb. 26, 2015, D.C. Law 20-155, § 7012(c)(7), 61 DCR 9990; Oct. 8, 2016, D.C. Law 21-160, § 7028(c)(4), 63 DCR 10775; Dec. 13, 2017, D.C. Law 22-33, § 7172(e), 64 DCR 7652.)

Prior Codifications

1981 Ed., § 47-1807.2.

1973 Ed., § 47-1571a.

Section References

This section is referenced in § 10-1203.07, § 32-241, § 47-340.26, § 47-1807.07, § 47-1807.08, § 47-1812.08, § 47-1817.06, § 47-4215, § 47-4602, and § 50-1501.02.

Effect of Amendments

D.C. Law 13-38 rewrote subsec. (a)(3) and repealed subsec. (a)(4).

Section 2702(i)(2)(B) of D.C. Law 13-38 provided: “This paragraph shall be effective for tax years beginning after December 31, 2002.”

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 13-91 amended subsec. (a)(4) by inserting the phrase “, and beginning on or before December 31, 2002” after the phrase “beginning on or after October 1, 1994”.

D.C. Law 14-28, added subsec. (a)(3A), and rewrote subsec. (a)(4) which had read as follows: “(4) A surtax, separate from and in addition to, the surtax imposed by paragraph (3) of this subsection, on the tax determined under paragraph (2) of this subsection at a rate of 2.5% for any tax period beginning on or after October 1, 1994, and beginning on or before December 31, 2002.”

D.C. Law 14-190, in subsec. (a), rewrote pars. (3) and (4).

The 2015 amendment by D.C. Law 20-155 added (a)(5) and (a)(6).

Cross References

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

Washington Convention Center Authority, collection and allocation of taxes under this section, see § 10-1203.07.

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(e) 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(e) of Fiscal Year 2018 Budget Support Emergency Act of 2017 (D.C. Act 22-104, July 20, 2017, 64 DCR 7032).

For temporary (90 days) amendment of this section, see § 2(a) of Franchise Tax Clarification Emergency Amendment Act of 2016 (D.C. Act 21-402, May 19, 2016, 63 DCR 7923).

For temporary (90 day) amendment of section, see §§ 3702 to 3704 of Fiscal Year 2002 Budget Support Emergency Act of 2001 (D.C. Act 14-124, August 3, 2001, 48 DCR 7861).

For temporary (90 day) amendment of section, see §§ 1002(a) and 1003 of Fiscal Year 2003 Budget Support Amendment Emergency Act of 2002 (D.C. Act 14-544, December 4, 2002, 49 DCR 11700).

For temporary (90 day) amendment of section, see §§ 1002(a) and 1003 of the Fiscal Year 2003 Budget Support Amendment Congressional Review Emergency Act of 2003 (D.C. Act 15-27, February 24, 2003, 50 DCR 2151).

For temporary (90 day) amendment of section, see § 802(c) 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 §§ 1002(a) and 1003 of Fiscal Year 2003 Budget Support Amendment Second Congressional Review Emergency Act of 2003 (D.C. Act 15-103, June 20, 2003, 50 DCR 5499).

For temporary (90 day) amendment of section 8074 of D.C. Law 19-21, see § 2(b) 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 days) amendment of this section, see § 7022(c)(7) 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)(7) 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)(7) 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 § 10(b) of the Fiscal Year 2016 Budget Support Clarification Emergency Amendment Act of 2016 (D.C. Act 21-292, Jan. 27, 2016, 63 DCR 1211).

Temporary Legislation

Section 2(b) of D.C. Law 19-53, in section 8074 of D.C. Law 19-21, substituted “for tax years beginning after December 31, 2010” for “as of December 31, 2010”.

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

Short Title

Short title: Section 8071 of D.C. Law 19-21 provided that subtitle H of title VIII of the act may be cited as “Minimum Corporate and Unincorporated Franchise Tax Payable ”.

Editor's Notes

Sections 8073 and 8074 of D.C. Law 19-21 provided:

“Sec. 8073. Rules.

“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.), may issues rules to implement the provisions of this subtitle.

“Sec. 8074. Applicability.

“This subtitle shall apply as of December 31, 2010.”

Section 4104 of D.C. Law 14-28 provided: “ Section 47-1807.02(a)(3A) and (4) are repealed effective for all tax periods beginning after December 31, 2002.”

Section 4103(a) of D.C. Law 14-28 provided: “Section 4102(a) shall apply for any tax period beginning after September 30, 1992.”

Section 4103(b) of D.C. Law 14-28 provides: “Section 4102(b) shall apply for any tax period beginning after September 30, 1994”.

Expiration of §§ 301, 302 and 303 of D.C. Law 10-188: Section 306(a) of D.C. Law 10-188 provided that the act shall expire 2 years after September 28, 1994, if the Board does not submit final financial requirements and a feasibility analysis to the Mayor and the Council as provided by § 10-1202.06(h).

Expiration of §§ 301, 302 and 303 of D.C. Law 10-188: See Historical and Statutory Notes following § 47-1807.02a.

Mayor authorized to issue regulations: Section 401 of D.C. Law 4-150 provided that the Mayor shall issue regulations necessary to carry out the provisions of the act.

Mayor authorized to issue rules: Section 1102 of D.C. Law 5-14 provided that the Mayor shall issue rules necessary to carry out the provisions of the act.

Audit of accounts and operation of Authority: See Historical and Statutory Notes following § 47-1807.02a.

Expiration of §§ 301, 302 and 303 of D.C. Law 10-188: Section 2(l)(1) of D.C. Law 12-142 provided that § 306(a) of D.C. Law 10-188, providing for the expiration of that act, is repealed. Section 2(l)(2) of D.C. Law 12-142 provided that the subsection shall apply as of February 27, 1997.

Audit of accounts and operation of Authority: See Historical and Statutory Notes following § 47-1807.02a.

Section 1003 of D.C. Law 14-307 provided: “Sec. 1003. Applicability. Section 1002 shall apply as of January 1, 2003.”

Delegation of Authority

Delegation of authority under Law 5-14, see Mayor’s Order 83-190, July 25, 1983.


§ 47–1807.02a. Tax on corporations — Transfer of surtax to Convention Center Authority. [Repealed]

Repealed.


(July 16, 1947, 61 Stat. 331, ch. 258, art. I, title VII, § 2a; as added Sept. 28, 1994, D.C. Law 10-188, § 301(a)(2), 41 DCR 5333; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Aug. 12, 1998, D.C. Law 12-142,§ 3(a), 45 DCR 4826.)

Prior Codifications

1981 Ed., § 47-1807.2a.

Section References

This section is referenced in § 10-1203.07.

Cross References

Washington Convention Center Authority, collection and allocation of taxes under this section, see § 10-1203.07.

Editor's Notes

Expiration of §§ 301, 302 and 303 of D.C. Law 10-188: Section 306(a) of D.C. Law 10-188 provided that the act shall expire 2 years after September 28, 1994, if the Board does not submit final financial requirements and a feasibility analysis to the Mayor and the Council as provided by § 10-1202.06(h).

Expiration of §§ 301, 302 and 303 of D.C. Law 10-188: For temporary amendment of D.C. Law 10-188, § 306(a), see § 2(b) of the Washington Convention Center Authority Act of 1994 Time Extension Emergency Act of 1996 (D.C. Act 11-509).

Audit of accounts and operation of Authority: Section 305(a) of D.C. Law 10-188 provided that “on or before July 1 of each year, the District of Columbia Auditor, pursuant to the Auditor’s duties under § 47-117(b) § 1-205.55(b), 2001 Ed., shall audit the accounts and operation of the Authority and make a specific finding of the sufficiency of the projected revenues from the taxes imposed pursuant to §§ 301, 302, 303, and 304 to meet the projected expenditures and reserve requirements of the Authority for the upcoming fiscal year.”

Section 305(b) of D.C. Law 10-188 provided that “if the audit conducted pursuant to subsection (a) of this section indicates that projected revenues from the taxes imposed pursuant to §§ 301, 302, 303, and 304 are insufficient to meet projected expenditures and reserve requirements of the Authority for the upcoming fiscal year, the Mayor shall impose a surtax, to become effective on or before October 1 of the upcoming year, on each of those taxes dedicated to the Authority excluding the tax on sales of restaurant meals and alcoholic beverages, in an amount equal to the pro rata share of the difference between (1) the sum of the projected expenditure and reserve requirements and (2) the projected revenues. The pro rata share shall be determined based on the pro rata estimated contribution of each tax to the total estimated tax revenue for the particular year as contained in the multiyear financial plan submitted pursuant to § 9-807(g) [§ 10-1202.06(g), 2001 Ed.].”


§ 47–1807.03. Tax on corporations — Financial institutions included. [Repealed]

Repealed.


(Sept. 26, 1984, D.C. Law 5-113, § 302(a)(2), 31 DCR 3974.)

Prior Codifications

1981 Ed., § 47-1807.3.

Temporary Legislation

Section 2(b) of D.C. Law 19-53, in section 8074 of D.C. Law 19-21, substituted “for tax years beginning after December 31, 2010” for “as of December 31, 2010”.

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


§ 47–1807.04. Tax credit to qualified businesses for wages to qualified employees; exceptions.

(a) Except as provided in subsection (b) of this section, for taxable years beginning after December 31, 1988, any incorporated business approved as qualified pursuant to § 6-1504 shall be allowed a credit against the tax imposed by this chapter in an amount equal to 50% of the wages paid by the qualified incorporated business to an employee certified by the Mayor under § 6-1504(c), during the first 24 calendar months in which the employer employed the certified employee.

(b) The credit under subsection (a) of this section shall not be allowed:

(1) To exceed, for any certified employee, a total of $7,500 in any 1 taxable year;

(2) Until the qualified incorporated business has employed the certified employee for at least 760 hours;

(3) For any calendar month in which the qualified incorporated business has not employed the certified employee for at least 90 hours;

(4) If the qualified incorporated business pays the certified employee less than the greater of the legal minimum wage or the wage the qualified incorporated business pays other employees in similar jobs;

(5) If the qualified incorporated business accords the certified employee lesser benefits or rights than it accords other employees in similar jobs;

(6) If the certified employee was employed as the result of the displacement, other than for cause, of another employee, or as the result of a strike or lockout, or 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;

(7) If the qualified incorporated business does not meet, with respect to the employment of the certified employee, all federal and District of Columbia laws and regulations, including those concerning health, safety, child labor, work/hour, and equal employment opportunity; or

(8) If the certified employee is a member of the board of directors of the qualified incorporated 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 domestic partner or as any relative listed in the definition of  “dependent” in § 152 of the Internal Revenue Code of 1986 (26 U.S.C. § 152), without regard to source of income.

(c) Whenever a qualified incorporated business is prevented from claiming the credit for wages paid because the certified employee was not employed for the period of time required by subsection (b)(2) and (3) of this section, the credit for wages paid may be claimed against the tax for the immediately succeeding taxable period in which the period of employment satisfies the requirement of subsection (b)(2) of this section.

(d) If the amount of the credit allowable under this section exceeds the tax otherwise due from a qualified incorporated business, the amount of the credit not used as an offset against the tax may be carried forward or back for up to 5 years, except that no portion of the credit shall be:

(1) Carried back to any taxable year ending before January 1, 1990; or

(2) Claimed for any taxable year in which the qualified incorporated business was not located within an economic development zone or did not employ a certified employee.


(July 16, 1947, ch. 258, art. I, title VII, § 3; as added Oct. 20, 1988, D.C. Law 7-177, § 10(b), 35 DCR 6158; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Sept. 12, 2008, D.C. Law 17-231, § 41(j), 55 DCR 6758.)

Prior Codifications

1981 Ed., § 47-1807.4.

Section References

This section is referenced in § 6-1504 and § 47-1808.07.

Effect of Amendments

D.C. Law 17-231, in subsec. (b)(8), substituted “spouse or domestic partner” for “spouse”.

Cross References

Economic development zones, available incentives, eligibility for corporate franchise tax credits, certified employees, see § 6-1504.

Editor's Notes

Mayor authorized to issue rules: See Historical and Statutory Notes following § 47-1803.03.


§ 47–1807.05. Reduction of tax credit for insurance premiums; exceptions.

(a) Except as provided in subsection (b) of this section, for taxable years beginning after December 31, 1988, the amount of tax payable under this chapter by an incorporated business approved as qualified under § 6-1504 shall be reduced by a credit equal to 50% of the insurance premiums attributable to a certified employee paid to insure employers against liability for compensation to residents of the District of Columbia under Chapter 15 of Title 32, for each of the first 24 months during which the qualified incorporated business has employed a certified employee.

(b) The credit under subsection (a) of this section shall not be allowed:

(1) Until the qualified incorporated business has employed the certified employee for at least 760 hours;

(2) For any calendar month in which the qualified incorporated business has not employed the certified employee for at least 90 hours;

(3) If the qualified incorporated business pays the certified employee less than the greater of the legal minimum wage or the wage the qualified incorporated business pays other employees in similar jobs;

(4) If the qualified incorporated business accords the certified employee lesser benefits or rights than it accords other employees in similar jobs;

(5) If the certified employee was employed as the result of the displacement, other than for cause, of another employee, or as the result of a strike or lockout, or 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;

(6) If the qualified incorporated business does not meet, with respect to the employment of the certified employee, all federal and District of Columbia laws and regulations, including those concerning health, safety, child labor, work/hour, and equal employment opportunity; or

(7) If the certified employee is a member of the board of directors of the qualified incorporated 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 domestic partner or as any relative listed in the definition of  “dependent” in § 152 of the Internal Revenue Code of 1986 (26 U.S.C. § 152), without regard to source of income.

(c) If the amount of the credit allowable pursuant to this section exceeds the tax imposed by this chapter otherwise due from a qualified incorporated business, the amount of the credit not used as an offset against the tax may be carried forward or back for up to 5 years, except that no portion of the credit shall be:

(1) Carried back to any taxable year ending before January 1, 1990; or

(2) Claimed for any taxable year in which the qualified incorporated business was not located within an economic development zone or did not employ a certified employee.


(July 16, 1947, ch. 258, art. I, title VII, § 4; as added Oct. 20, 1988, D.C. Law 7-177, § 10(b), 35 DCR 6158; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Sept. 12, 2008, D.C. Law 17-231, § 41(k), 55 DCR 6758.)

Prior Codifications

1981 Ed., § 47-1807.5.

Section References

This section is referenced in § 6-1504 and § 47-1808.07.

Effect of Amendments

D.C. Law 17-231, in subsec. (b)(7), substituted “spouse or domestic partner” for “spouse”.

Cross References

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

Editor's Notes

Mayor authorized to issue rules: See Historical and Statutory Notes following § 47-1803.03.


§ 47–1807.06. Tax credit for income that includes rent charged to licensed, nonprofit child development center; exceptions.

(a) For taxable years beginning after December 31, 1988, any qualified incorporated business under § 6-1504 having taxable income that includes rent charged to a licensed, non-profit child development center shall be allowed a credit against the tax imposed by this chapter in an amount equal to the amount by which the fair market value of the space leased to the licensed, nonprofit child development center exceeds the rent charged by the business to the licensed, non-profit child development center.

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

(1) “Fair market rental value” means:

(A) The average rent charged by the incorporated business to tenants in the same building, other than the licensed, nonprofit child development center, for comparable space; or

(B) When a licensed, nonprofit child development center is the sole lessee occupying space in the building, or when the building contains no space comparable to that occupied by the licensed, nonprofit child development center, an amount as determined by the Mayor with reference to the average rent charged to tenants for occupancy of comparable space in other buildings in the economic development zone.

(2) “Child development center” means a child development center as that term is defined in § 4-401(2).

(c) If the amount of the credit allowable under this section exceeds the tax otherwise due from a qualified incorporated business, the amount of the credit not used as an offset against the tax may be carried forward or back for up to 5 years, except that no portion of the credit shall be:

(1) Carried back to any taxable year ending before January 1, 1990; or

(2) Claimed for any taxable year in which the qualified incorporated business was not located within an economic development zone or did not employ a certified employee.


(July 16, 1947, ch. 258, art. I, title VII, § 5; as added Oct. 20, 1988, D.C. Law 7-177, § 10(b), 35 DCR 6158; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-1807.6.

Section References

This section is referenced in § 6-1504 and § 47-1808.07.

Editor's Notes

Mayor authorized to issue rules: See Historical and Statutory Notes following § 47-1803.03.


§ 47–1807.07. Employer-assisted home purchase tax credit.

(a) For the purposes of this section, 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; and

(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 this title (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.

(2) “Certified employer-assisted home purchase program” means a program:

(A) Through which an employer provides homeownership assistance to its employees;

(B) Which is provided uniformly to the employees of the employer; provided, that the employer may limit eligibility for the program by establishing a maximum income limit and may limit assistance to new homebuyers; and

(C) Which is certified by the Mayor.

(3) “Eligible employee” means an employee who:

(A) Has been employed by the employer for the prior 12 months;

(B) Is not self-employed;

(C) Is not a member of the board of directors of the employer;

(D) Does not own, directly or indirectly, a majority of the stock of the employer; and

(E) Has a household income equal to or less than 120% of the area median income.

(4) Employer“ means a natural person, corporation, partnership, limited liability company, or other entity that:

(A) Is subject to taxation under § 47-1807.02 or § 47-1808.03 or is exempt from taxation under § 47-1802.01; and

(B) Has one or more employees.

(5) “Homeownership assistance” means money provided to an eligible employee by an employer for the down payment or other acquisition costs for the purchase of the principal place of residence of the employee.

(6) “New homebuyer” means an employee (and, if married or in a domestic partnership, the employee’s spouse or domestic partner) who did not own a principal place of residence in the District during the previous 12 months.

(b)(1) For taxable years beginning after December 31, 2002, the amount of tax payable under this subchapter shall be reduced by a credit equal to 1/2 of the amount of the homeownership assistance provided by the employer to its eligible employees during the taxable year; provided, that:

(A) The reduction shall not exceed $2,500 for any one eligible employee who receives homeownership assistance;

(B) The assistance is provided through a certified employer-assisted home purchase program;

(C) The assistance is used for the purchase of a qualified residential real property; and

(D) The eligible employee is a new homebuyer.

(2) If the homeownership assistance consists of providing a loan and then discharging all or a portion of the loan upon completion of a required period of employment, the homeownership assistance shall be treated as provided at the time that the loan, or the portion of the loan, is discharged.

(3) To claim the credit allowed by this subsection, the employer shall attach to its tax return:

(A) A form certifying, for each person for whom the employer is claiming the credit under this section:

(i) The person is an eligible employee of the employer;

(ii) The employer provided homeownership assistance to the eligible employee under a certified employer-assisted home purchase program;

(iii) The amount of homeownership assistance provided to the eligible employee;

(iv) The eligible employee used the homeownership assistance to purchase qualified residential real property;

(v) The household size and household income of the eligible employee;

(vi) The address of the qualified residential real property; and

(vii) The eligible employee intends to reside in the qualified residential real property for at least 5 years; and

(B) A copy of the certification of the employer’s employer-assisted affordable homeownership assistance program under which the homeownership assistance was provided.


(Apr. 19, 2002, D.C. Law 14-114, § 901(b)(2), 49 DCR 1468; Sept. 12, 2008, D.C. Law 17-231, § 41(l), 55 DCR 6758.)

Section References

This section is referenced in § 47-1803.02 and § 47-1808.07.

Effect of Amendments

D.C. Law 17-231, in subsec. (a)(6), substituted “(and, if married or in a domestic partnership, the employee’s spouse or domestic partner)” for “(and, if married, the employee’s spouse)”.

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.”


§ 47–1807.08. Tax credit for corporations that provide an employee paid leave to serve as an organ or bone marrow donor.

(a) For the purposes of this section, the term “donor” means an individual who makes a gift of an organ, including eyes, or bone marrow.

(b)(1) If in addition to any medical, personal, or other paid leave, including credit for time of service, provided by a corporation, the corporation provides an employee a paid leave of absence to serve as an organ or bone marrow donor, the corporation may claim a nonrefundable credit equal to 25% of the regular salary paid during the taxable year for the leave of absence, not to exceed 30 days for an organ donation and 7 days for a bone marrow donation.

(2) If the corporation elects to claim the credit, an amount equal to the salary or wages upon which the 25% credit is computed shall not be allowed as a deduction.

(3) The credit shall not reduce the minimum tax liability of $100 [now $250] under § 47-1807.02(b).

(c) This section shall not apply if the employee is eligible for leave under the Family and Medical Leave Act of 1993, approved February 5, 1993 (107 Stat. 6; 29 U.S.C. § 2601 et seq.).

(d) The Chief Financial Officer or his delegate shall promulgate regulations as may be necessary and appropriate to carry out provisions of this section.


(Mar. 6, 2007, D.C. Law 16-211, § 2(b), 53 DCR 9852; Mar. 25, 2009, D.C. Law 17-353, § 144, 56 DCR 1117.)

Effect of Amendments

D.C. Law 17-353 validated a previously made technical correction in subsec. (b)(3).

Emergency Legislation

For temporary (90 day) addition, see § 2(c) 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(c) of D.C. Law 17-384 added a section to read as follows:

§ 47-1807.09. 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 § 47-1807.02 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 eligible 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

Applicability: Section 7080 of D.C. Law 17-219 repealed section 3 of D.C. Law 16-211.


§ 47–1807.09. Job growth tax credit.

A job growth tax credit shall be allowed as provided in subchapter VII-A of this chapter [§ 47-1807.51 et seq.].


(July 27, 2010, D.C. Law 18-202, § 2(b), 57 DCR 4746.)

Emergency Legislation

For temporary (90 day) repeal of § 4 of D.C. Law 18-202, see § 715 of Fiscal Year 2011 Supplemental Budget Support Emergency Act of 2010 (D.C. Act 18-694, January 19, 2011, 58 DCR 662).

Editor's Notes

Sections 3 and 4 of D.C. Law 18-202 provided:

“Sec. 3. Sunset.

“This act shall expire on January 1, 2030.

“Sec. 4. Applicability.

“This act shall apply upon the inclusion of its fiscal effect in an approved budget and financial plan.”

Section 715 of D.C. Law 18-370 repealed section 3 of D.C. Law 18-202.


§ 47–1807.10. Tax on corporations — 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 § 47-1807.02 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.

(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 § 47-1807.02 for that year.

(d) If the amount of the tax credit permitted under this section exceeds the tax otherwise due under § 47-1807.02, 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 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” shall have the same meaning as provided in § 47-1806.12(f)(1).

(2) “Eligible applicant” means a corporation that is the owner or lessee of a qualified alternative fuel vehicle refueling property.

(3) “Qualified alternative fuel vehicle refueling property” shall have the same meaning as provided in § 47-1806.12(f)(3).


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

Emergency Legislation

For temporary (90 days) addition of this section, see § 7082(c) 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(c) 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(c) 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).


§ 47–1807.11. Tax on corporations — 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 § 47-1807.02 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 § 47-1807.02 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(c), 61 DCR 9990.)

Emergency Legislation

For temporary (90 days) addition of this section, see § 7082(c) 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(c) 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(c) 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).


§ 47–1807.12. Tax on corporations and financial institutions — Credits — Tax credit for farm to food donations. [Repealed]

[Repealed].


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


§ 47–1807.13. Wheelchair-accessible vehicle tax credit. [Not Funded]

Not Funded.


(Apr. 7, 2017, D.C. Law 21-242, § 3(b), 64 DCR 1608.)

Applicability

Applicability of D.C. Law 21-242: § 4 of D.C. Law 21-242 provided that the creation of this section by § 3(b) of D.C. Law 21-242 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.


§ 47–1807.14. Retailer property tax relief credit.

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

(1) "Qualified corporation" means a corporation that:

(A) Is engaged in the business of making sales at retail and files a sales tax return pursuant to Chapter 20 of this title reflecting those sales;

(B) Has less than $2,500,000 in federal gross receipts or sales; and

(C) Is current on all District tax filings and payments.

(2) "Qualified retail rental location" means a building or part of a building in the District that during the taxable year is:

(A) A retail establishment as defined in § 47-2001(m);

(B) The primary place of the retail business of the qualified corporation;

(C) Leased by the qualified corporation; and

(D) Classified, in whole or in part, as Class 2 Property, as defined in § 47-813 and has obtained a Certificate of Occupancy for commercial use.

(3) "Qualified retail owned location" means a building or part of a building in the District that during the taxable year is:

(A) The primary place of the retail business of the qualified corporation;

(B) Owned by the qualified corporation; and

(C) Classified, in whole or in part, as Class 2 Property, as defined in § 47-813 and has obtained a Certificate of Occupancy for commercial use.

(b) For taxable years beginning after December 31, 2017, a qualified corporation may claim a credit against the tax imposed by this chapter as follows:

(1) A tax credit equal to 10% of the total rent paid by the corporation for a qualified rental retail location during the taxable year not to exceed $5,000; or

(2) A tax credit equal to the total Class 2 real property taxes, pursuant to § 47-811, paid by the qualified corporation for a qualified retail owned location during the taxable year not to exceed the lesser of the real property tax paid during the taxable year or $5,000.

(c) The credit claimed under this section in any one taxable year may exceed the qualified corporation's tax liability, including any minimum tax due under § 47-1807.02(b), under this chapter for that taxable year and shall be refundable to the corporation claiming the credit.

(d) This section shall not apply if:

(1) The qualified corporation receives any tax credits towards payment of the real property tax for the qualified rental retail location or qualified owned retail location; or

(2) The qualified rental retail location or qualified owned retail location is exempt from real property tax.


(Oct. 30, 2018, D.C. Law 22-168, § 7252(b), 65 DCR 9388; Feb. 22, 2019, D.C. Law 22-234, § 5(a), 66 DCR 219.)

Applicability

Section 6 of D.C. Law 22-234 provided that the amendments made to this section by D.C. Law 22-234 shall apply as of October 1, 2018.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 5(a) of Fiscal Year 2019 Budget Support Clarification Congressional Review Emergency Amendment Act of 2018 (D.C. Act 22-552, Dec. 31, 2018, 66 DCR 251).

For temporary (90 days) amendment of this section, see § 5(a) of Fiscal Year 2019 Budget Support Clarification Emergency Amendment Act of 2018 (D.C. Act 22-488, Oct. 22, 2018, 65 DCR12046).

For temporary (90 days) amendment of this section, see § 2(b)(1) of Fiscal Year 2019 Budget Support Clarification Emergency Amendment Act of 2018 (D.C. Act 22-488, Oct. 22, 2018, 65 DCR12046).

For temporary (90 days) creation of this section, see § 7252(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 § 7252(b) of Fiscal Year 2019 Budget Support Emergency Act of 2018 (D.C. Act 22-434, July 30, 2018, 65 DCR 8200).

Temporary Legislation

For temporary (225 days) amendment of this section, see § 4(a) of Fiscal Year 2019 Budget Support Clarification Temporary Amendment Act of 2018 (D.C. Law 22-218, Feb. 22, 2019, 65 DCR 12977).


§ [47-1807.15]. Tax on corporations and financial institutions - Credits -Tax credit for food donations. [Not Funded]

Not Funded.


(Feb. 22, 2019, D.C. Law 22-212, § 101(c), 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(c) 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.