Mayor Vincent C. Gray
M. Jeffrey Miller
Interim Deputy Mayor for Planning & Economic
Development
DC BUSINESS
INCENTIVES
WASHINGTON, DC ECONOMIC
PARTNERSHIP & U.S. SMALL
BUSINESS ASSOCIATION
ENTREPRENEUR ROAD MAP
SERIES
August 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
2
DC Tech Incentives
Supermarket Tax Incentives
Great Streets Small Business
Capital Improvement Grants
Digital DC Technology Fund
Business Incentives
3
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
4
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 5
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
6
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
7
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
8
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 9
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
10
http://geospatial.dcgis.dc.gov/incentive/
Find eligible areas
for each business
incentive
Identify available
business incentives
at a specific
See owner and
zoning for each
parcel
DC Business Incentives Maps
11
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
12
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
Great Streets Small Business
Capital Improvement Grants
13
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
14
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
15
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
16
Thank you!
For more information, please contact
Polina Bakhteiarov
polina.bakhteiarov@dc.gov
(202) 741-8952
Questions & Answers
17

Financial Incentives | DMPED | Entrepreneur Road Map

  • 1.
    Mayor Vincent C.Gray M. Jeffrey Miller Interim Deputy Mayor for Planning & Economic Development DC BUSINESS INCENTIVES WASHINGTON, DC ECONOMIC PARTNERSHIP & U.S. SMALL BUSINESS ASSOCIATION ENTREPRENEUR ROAD MAP SERIES August 13th, 2014
  • 2.
    The District offersmany 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 2
  • 3.
    DC Tech Incentives SupermarketTax Incentives Great Streets Small Business Capital Improvement Grants Digital DC Technology Fund Business Incentives 3
  • 4.
    OVERVIEW • Goal: reducethe 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 4
  • 5.
    TAX BENEFITS • 10-yearexemption 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 5
  • 6.
    DOES MY BUSINESSQUALIFY? 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 6
  • 7.
    DC Tech Incentives HOWDO I APPLY? Self-certify through the DC Office of Tax and Revenue: http://otr.cfo.dc.gov/page/qualified-high- tech-companies-tax-forms 7
  • 8.
    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 8
  • 9.
    Supermarket Tax Incentives DOESMY 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 9
  • 10.
    Supermarket Tax Incentives HOWDO I APPLY? • Contact Polina Bakhteiarov at polina.bakhteiarov@dc.gov or (202) 741-8952 for location eligibility verification letter and full list of requirements 10
  • 11.
    http://geospatial.dcgis.dc.gov/incentive/ Find eligible areas foreach business incentive Identify available business incentives at a specific See owner and zoning for each parcel DC Business Incentives Maps 11
  • 12.
    OVERVIEW • Goal: supportexisting 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 12
  • 13.
    DOES MY BUSINESSQUALIFY? • 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 Great Streets Small Business Capital Improvement Grants 13
  • 14.
    HOW DO IAPPLY? • 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 14
  • 15.
    OVERVIEW • Goal: bolsterthe 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 15
  • 16.
    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 16
  • 17.
    Thank you! For moreinformation, please contact Polina Bakhteiarov polina.bakhteiarov@dc.gov (202) 741-8952 Questions & Answers 17