Mayor Vincent C. Gray

M. Jeffrey MillerInterim Deputy Mayor for Planning & Economic Development

DC BUSINESS INCENTIVES

WASHINGTON, DC ECONOMIC PARTNERSHIP & U.S. SMALL BUSINESS ASSOCIATION

ENTREPRENEUR ROAD MAP SERIESAugust 13th, 2014

The District offers many resources for entrepreneurs

Dept. of Small & Local Business Development

Assistance with connecting to local, federal, and global opportunities

Small Business Resource Center Assistance with navigating the District’s business regulations

Business Incentives

Designed to build the tax base and create jobs for District residents

Dept. of Employment Services

Assistance with hiring and training employees

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DC Tech Incentives

Supermarket Tax Incentives

Great Streets Small BusinessCapital Improvement Grants

Digital DC Technology Fund

Business Incentives

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OVERVIEW

• Goal: reduce the cost of doing business for high-technology companies

• Incentives include tax credits for retraining, wages, and relocation costs, and multiple tax exemptions and reductions

DC Tech Incentives

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TAX BENEFITS• 10-year exemption from personal

property sales and use tax

• 10-year exemption from personal property tax

• 5-year exemption from corporate franchise tax up to $15 million

• Deduction for personal property expenses and/or leasehold improvements up to $40,000 over 24 months

• Rollover (deferral) of certain capital gains

• Reduction in real property tax

DC Tech Incentives

TAX CREDITS• Cost of retraining “qualified

disadvantaged employees” (up to $20,000 per employee in first 18 months of employment)

• [Corporations only] Wages paid to employees in first 24 months of employment

• For “qualified disadvantaged employees” – 50% of wages up to $15,000 per employee• For “qualified employees” – 10% of wages up to $5,000 per employee

• [Corporations only] Payments/reimbursements of employee relocation costs up to $7,500 per employee depending on residency and up to

$1 million total annual credit

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DOES MY BUSINESS QUALIFY?

A Qualified High Technology Company (QHTC) is one which:

• Is an individual or entity organized for profit

• Maintains an office, headquarters, or base of operations in DC

• Has 2 or more employees in DC• Derives the majority of its revenue from

qualifying high technology activities• Does not derive the majority of its

revenue from operating a retail store or electronic equipment facility in DC

• Is registered with the DC Government as a business in DC

• Is current in all DC Government filing requirements and payment obligations

DC Tech Incentives

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DC Tech Incentives

HOW DO I APPLY?

Self-certify through the DC Office of Tax and Revenue: http://otr.cfo.dc.gov/page/qualified-high-tech-companies-tax-forms

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Supermarket Tax Incentives

OVERVIEW

• Goal: encourage new fresh food markets to open in areas that lack this amenity

• Benefits:• 10-year exemption from real property tax

• 10-year exemption from personal property tax

• 10-year exemption from license fee

• Exemption from sales and use tax on building materials purchased in DC

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Supermarket Tax Incentives

DOES MY BUSINESS QUALIFY?• Located in a HUBZone or one of the

following Census tracts:• 18.01• 33.01• 95.05• 95.07• 95.08

• Licensed as a grocery store

• Certificate of Occupancy with Approved Zoning Code Use as a grocery store

• Inventory must include full line of meat, seafood, fruits, vegetables, dairy products, dry groceries, household products, and sundries

• Active First Source Agreement with DC Department of Employment Services and proof of compliance

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Supermarket Tax Incentives

HOW DO I APPLY?

• Contact Polina Bakhteiarov at polina.bakhteiarov@dc.gov or (202) 741-8952 for location eligibility verification letter and full list of requirements

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http://geospatial.dcgis.dc.gov/incentive/

Find eligible areas for each

business incentive

Identify available business

incentives at a specific address

See owner and zoning for each

parcel

DC Business Incentives Maps

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OVERVIEW• Goal: support existing small businesses,

attract new small businesses to the District, and transform emerging commercial corridors into thriving and inviting neighborhood centers

• Reimbursable grant of up to $85,000 for small business owners to improve their place of business• Build-out of new improvements• Renovations of existing improvements (both interior and exterior)• Façade improvements• Equipment upgrades

Great Streets Small Business Capital Improvement Grants

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DOES MY BUSINESS QUALIFY?• Located within or along the boundary of

a Great Streets corridor

• Be a registered business in good standing with local and federal agencies

• Retain site control of the property either through fee simple ownership or an executed contract or lease with the property owner with a minimum unexpired term of at least two (2) years

• Provide proof of property and liability insurance

• Ineligible business types:• Liquor stores• Nightclubs• Bars•On H Street NE only: restaurants, phone stores, businesses with 20+ locations in the United States

Great Streets Small Business Capital Improvement Grants

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HOW DO I APPLY?• Verify location eligibility using interactive

mapping tool at greatstreets.dc.gov

• Email greatstreets@dc.gov to be added to the mailing list and receive an alert when the Fiscal Year 2015 application becomes available

Great Streets Small Business Capital Improvement Grants

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OVERVIEW

• Goal: bolster the District’s burgeoning technology sector by supporting the attraction and retention of early and growth stage technology ventures

• Provide working capital and customized mentorship to companies that relocate to the 7th Street/Georgia Avenue Great Streets corridor (Digital DC Tech Opportunity Corridor)

• Part of Digital DC – a marketing campaign and economic development initiative that promotes Washington, DC as the leading community in the innovation and high-tech economy

Digital DC Technology Fund

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PILOT INVESTMENT ROUND

• Summer 2014• $1 million total• Non-dilutive grants• $25,000 - $200,000 per grantee• Grantees provided with training, access

to networks, capital, and other resources• 140 applicants• Award announcements to be made in Fall

2014

Digital DC Technology Fund

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Thank you!

For more information, please contact

Polina Bakhteiarov

polina.bakhteiarov@dc.gov

(202) 741-8952

Questions & Answers

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