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.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-1807.1.
1973 Ed., § 47-1571.
Legislative History of Laws
Law 5-113, the "District of Columbia Revenue Act of 1984," was introduced in Council and assigned Bill No. 5-370, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on June 26, 1984 and July 10, 1984, respectively. Signed by the Mayor on July 13, 1984, it was assigned Act No. 5-164 and transmitted to both Houses of Congress for its review.
For legislative history of D.C. Law 7-29, see Historical and Statutory Notes following § 47-1801.01a.
Miscellaneous Notes
Mayor authorized to issue rules: See second paragraph of note to § 47-2601.
(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.
(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 26, 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.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-1807.2.
1973 Ed., § 47-1571a.
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 provides: "This paragraph shall be effective for tax years beginning after December 31, 2002."
Section 2703(c) of D.C. Law 13-38 provides: "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) which had read as follows:
"(3)(A) For the taxable years beginning after December 31, 2002, a tax at the rate of 9% upon the taxable income of every corporation, whether domestic or foreign, except that for taxable years beginning after December 31, 2003, the rate of tax shall be 8.5%.
"(B) Subparagraph (A) of this paragraph shall not apply if 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%."
"(4) 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) of this subsection, as applicable, for any tax period beginning after September 30, 1994."
D.C. Law 14-307, in subsec. (a), substituted "9.5%" for "9.0%" in par. (3), rewrote par. (3A), added par. (3B), and rewrote par. (4). Prior to amendment, pars. (3A) and (4) and read as follows:
"(3A) Repealed."
"(4) Repealed."
D.C. Law 19-21, in subsec. (b), substituted "shall be $250. If District gross receipts are greater than $1 million, the minimum tax payable shall be $1,000." for "shall be $100".
Temporary Amendments of Section
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 provides that the act shall expire after 225 days of its having taken effect.
Emergency Act Amendments
For temporary (90-day) amendment of section, see §§ 2702(i) and 2703(c) of the Service Improvement and Fiscal Year 2000 Budget Support Emergency Act of 1999 (D.C. Act 13-110, July 28, 1999, 46 DCR 6320).
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).
Legislative History of Laws
For legislative history of D.C. Law 1-23, see Historical and Statutory Notes following § 47-1801.04.
Law 1-77, the "Corporate and Unincorporated Business Franchise Surtax Act of 1976," was introduced in Council and assigned Bill No. 1-265, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on April 6, 1976 and April 20, 1976, respectively. Signed by the Mayor on May 18, 1976, it was assigned Act No. 1-120 and transmitted to both Houses of Congress for its review.
Law 2-58, the "Hotel Occupancy and Surtax on Corporations and Unincorporated Business Tax Act of 1977," was introduced in Council and assigned Bill No. 2- 169, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on September 13, 1977 and October 11, 1977, respectively. Signed by the Mayor on December 30, 1977, it was assigned Act No. 2-127 and transmitted to both Houses of Congress for its review.
For legislative history of D.C. Law 3-95, see Historical and Statutory Notes following § 47-1801.04.
For legislative history of D.C. Law 4-150, see Historical and Statutory Notes following § 47-1801.04.
Law 5-14, the "District of Columbia Revenue Act of 1983," was introduced in Council and assigned Bill No. 5-74, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on April 12, 1983 and April 26, 1983, respectively. Signed by the Mayor on May 4, 1983, it was assigned Act No. 5-29 and transmitted to both Houses of Congress for its review.
For legislative history of D.C. Law 5-113, see Historical and Statutory Notes following § 47-1807.01.
For legislative history of D.C. Law 7-29, see Historical and Statutory Notes following § 47-1801.01a.
For legislative history of D.C. Law 8-17, see Historical and Statutory Notes following § 47-1803.02.
For legislative history of D.C. Law 10-128, see Historical and Statutory Notes following § 47-1801.04.
For legislative history of D.C. Law 10-188, see Historical and Statutory Notes following § 47-1807.02a.
For Law 13-38, see notes following § 47-1801.04.
Law 13-91, the "Technical Amendments Act of 1999," was introduced in Council and assigned Bill No. 13-435, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on November 2, 1999, and December 7, 1999, respectively. Signed by the Mayor on December 29, 1999, it was assigned Act No. 13-234 and transmitted to both Houses of Congress for its review. D.C. Law 13-91 became effective on April 12, 2000.
Law 14-28, the "Fiscal Year 2002 Budget Support Act of 2001", was introduced in Council and assigned Bill No. 14-144, which was referred to the Committee Of the Whole. The Bill was adopted on first and second readings on May 1, 2001, and June 5, 2001, respectively. Signed by the Mayor on June 29, 2001, it was assigned Act No. 14-85 and transmitted to both Houses of Congress for its review. D.C. Law 14-28 became effective on October 3, 2001.
For Law 14-190, see notes following § 47-308.01.
For Law 14-307, see notes following § 47-903.
For history of Law 19-21, see notes under § 47-305.02.
Miscellaneous Notes
Section 4104 of D.C. Law 14-28 provides: "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 provides: "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."
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 ".
Sections 8073 and 8074 of D.C. Law 19-21 provide:
"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."
Delegation of Authority
Delegation of authority under Law 5-14, see Mayor's Order 83-190, July 25, 1983.
Miscellaneous 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: 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 provides 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 provides:
"Sec. 1003. Applicability.
"Section 1002 shall apply as of January 1, 2003."
(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.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-1807.2a.
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2(b) of Washington Convention Center Authority Act of 1994 Time Extension Temporary Amendment Act of 1996 (D.C. Law 11-262, April 25, 1997, law notification 44 DCR 2860).
Emergency Act Amendments
For temporary amendment of section, see § 2(b) of the Washington Convention Center Authority Act of 1994 Emergency Amendment Act of 1996 (D.C. Act 11-393, October 1, 1996, 43 DCR 5430).
Legislative History of Laws
Law 10-188, the "Washington Convention Center Authority Act of 1994," was introduced in Council and assigned Bill No. 10-527, which was referred to the Committee on Economic Development and sequentially to the Committee of the Whole. The Bill was adopted on first and second readings on July 5, 1994, and July 19, 1994, respectively. Signed by the Mayor on August 2, 1994, it was assigned Act No. 10-314 and transmitted to both Houses of Congress for its review. D.C. Law 10-188 became effective on September 28, 1994.
Law 12-142, the "Washington Convention Center Authority Financing Amendment Act of 1998," was introduced in Council and assigned Bill No. 12-379, which was referred to the Committee on Economic Development and the Committee on Finance and Revenue. The Bill was adopted on first and second readings on June 2, 1998, and June 16, 1998, respectively. Signed by the Mayor on June 23, 1998, it was assigned Act No. 12-402 and transmitted to both Houses of Congress for its review. The legislation became effective on August 12, 1998, the date that the President of the United States signed P.L. 105-227, which waived the 30-day Congressional review period for this law.
Miscellaneous 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.]."
(Sept. 26, 1984, D.C. Law 5-113, § 302(a)(2), 31 DCR 3974.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-1807.3.
Temporary Amendments of Section
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 provides that the act shall expire after 225 days of its having taken effect.
Legislative History of Laws
For legislative history of D.C. Law 5-113, see Historical and Statutory Notes following § 47-2601.
(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.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-1807.4.
Effect of Amendments
D.C. Law 17-231, in subsec. (b)(8), substituted "spouse or domestic partner" for "spouse".
Legislative History of Laws
For legislative history of D.C. Law 7-177, see Historical and Statutory Notes following § 47-1803.03.
For Law 17-231, see notes following § 47-802.
Miscellaneous Notes
Mayor authorized to issue rules: See Historical and Statutory Notes following § 47-1803.03.
(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.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-1807.5.
Effect of Amendments
D.C. Law 17-231, in subsec. (b)(7), substituted "spouse or domestic partner" for "spouse".
Legislative History of Laws
For legislative history of D.C. Law 7-177, see Historical and Statutory Notes following § 47-1803.03.
For Law 17-231, see notes following § 47-802.
Miscellaneous Notes
Mayor authorized to issue rules: See Historical and Statutory Notes following § 47-1803.03.
(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.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-1807.6.
Legislative History of Laws
For legislative history of D.C. Law 7-177, see Historical and Statutory Notes following § 47-1803.03.
Miscellaneous Notes
Mayor authorized to issue rules: See Historical and Statutory Notes following § 47-1803.03.
(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.)
HISTORICAL AND STATUTORY NOTES
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)".
Legislative History of Laws
For Law 14-114, see notes following § 47-857.01.
For Law 17-231, see notes following § 47-802.
Miscellaneous Notes
Section 1101 of D.C. Law 14-114 provides: "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."
(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 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.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 17-353 validated a previously made technical correction in subsec. (b)(3).
Temporary Addition of Section
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 provides that the act shall expire after 225 days of its having taken effect.
Emergency Act Amendments
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).
Legislative History of Laws
Law 16-211, the "Organ and Bone Marrow Donor Act of 2006", was introduced in Council and assigned Bill No. 16-701, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on October 3, 2006, and November 14, 2006, respectively. Signed by the Mayor on December 4, 2006, it was assigned Act No. 16-536 and transmitted to both Houses of Congress for its review. D.C. Law 16-211 became effective on March 6, 2007.
For Law 17-353, see notes following § 47-308.
Miscellaneous Notes
Applicability: Section 7080 of D.C. Law 17-219 repealed section 3 of D.C. Law 16-211.
A job growth tax credit shall be allowed as provided in subchapter VII-A of this chapter.
(July 27, 2010, D.C. Law 18-202, § 2(b), 57 DCR 4746.)
HISTORICAL AND STATUTORY NOTES
Emergency Act Amendments
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).
Legislative History of Laws
Law 18-202, the "Job Growth Incentive Act of 2010", was introduced in Council and assigned Bill No. 18-658, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on April 20, 2010, and May 4, 2010, respectively. Signed by the Mayor on May 21, 2010, it was assigned Act No. 18-414 and transmitted to both Houses of Congress for its review. D.C. Law 18-202 became effective on July 27, 2010.
Miscellaneous Notes
Sections 3 and 4 of D.C. Law 18-202 provide:
"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.
