Code of the District of Columbia

§ 2–218.31. Local business enterprises.

*NOTE: This section includes amendments by temporary legislation that will expire on May 5, 2022. To view the text of this section after the expiration of all emergency and temporary legislation affecting this section, click this link: Permanent Version.*

A business enterprise shall be eligible for certification as a local business enterprise if the business enterprise:

(1) Has its principal office located physically in the District of Columbia;

(1A)(A) Is:

(i) Independently owned, operated, and controlled;

(ii) More than 50% owned, operated, and controlled by a District-based enterprise or not-for-profit business; or

(iii) Owned by a non-District-based business enterprise or not-for-profit business that is more than 50% owned by District residents.

(B) For the purposes of this paragraph, the term "Independently owned, operated, and controlled" includes a business enterprise that manages and controls its day-to-day operations without being subject to control, restriction, modification, or limitation by another business enterprise or not-for-profit business that has an ownership or other financial interest in the business enterprise.

(2) Requires that its chief executive officer and the highest level managerial employees of the business enterprise perform their managerial functions in their principal office located in the District;

(2A) Can demonstrate one of the following:

(A) More than 50% of the employees of the business enterprise are residents of the District;

(B) The owners of more than 50% of the business enterprise are residents of the District;

(C) More than 50% of the assets of the business enterprise, excluding bank accounts, are located in the District; or

(D) More than 50% of the business enterprise’s gross receipts are District gross receipts; and

(3) Can demonstrate one of the following:

(A) The business enterprise is licensed pursuant to Chapter 28 of Title [47];

(B) The business enterprise is subject to the tax levied under Chapter [18] of Title 47; or

(C) The business enterprise is a business enterprise identified in § 47-1808.01(1) through (5) and more than 50% of the business is owned by residents of the District.