Business Incentives

OVERVIEW

Economic Incentives that Pay Off

Doing business in Washington, DC has its obvious perks – highly educated labor supply, global accessibility, and connections to influencers and policymakers. Companies choosing the District can contribute to the stable and diverse economy by optimizing their growth potential with the city’s attractive financial incentives.

New to DC or a long-standing business, you may be eligible for a variety of tax credits, small business grants, rebates, certifications, and access to special capital improvement financing to grow or expand your business. Explore the District’s additional benefits for investments in technology, sustainability, workforce, housing and retail.

We’ll help you find the right economic incentives to maximize resources, and together, create jobs to build an even stronger, more viable District of Columbia. Additional incentives can be found by downloading Washington, DC Business Incentives or by visiting incentives.dc.gov.

Quick Resource Links

Emerging Corridors & Opportunity Zones

DC Doing Business Guide

Washington, DC Business Incentives

Resource Links

D.C. Business Incentives & Resources

D.C. Business Incentives Map

Great Streets commercial revitalization

Opportunity Zones

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High-Tech with High-ROI

As a high-tech hub, Washington, D.C. offers attractive credits, exemptions and other benefits to technology businesses.

Thrive in DC includes a 0% corporate income tax rate for five years, then a reduction in the corporate income tax rate to6% for the following five years. It also provides an increased business expense deduction up to $40,000 for depreciable assets
Grow in DC offers wage reimbursements of up to$15,000 annually (for 24 months) for each qualifying employee, a new hire retraining tax credit up to $20,000 per qualifying employee, and a 10-year tax exemption from the date of acquisition on personal property used for operating your business
Move to DC offers relocation reimbursements up to $7,500 for each employee who relocates to the District and a five-year freeze on real property taxes for office improvements.

To be eligible, an individual or entity organized for profit must maintain an office, headquarters or base of operations in D.C. and have at least two employees in the district. At least 51% of revenue earned in D.C. must be from qualifying high-tech activities.

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Earn Incentives as You Hire

The Work Opportunity Tax Credit reduces the federal tax liability of private-for-profit, and, in some instances, nonprofit employers hiring new employees from eligible target groups(individuals who have consistently faced significant barriers to employment)

This program helps reduce the cost of doing business by decreasing federal income tax liability by $1,200 to $9,600 per employee. There are no limit to the number of new hires you may claim. Employers may hire eligible employees from these target groups:

Unemployed veterans, including disabled veterans
Temporary Assistance for Needy Families (TANF) recipients
Food stamp (SNAP) recipients
Designated community residents living in Empowerment Zones or Rural Renewal Counties
Vocational rehabilitation referred individuals
Ex-felons
Supplemental security income recipients
Summer youth employees living in Empowerment Zones
Qualified long-term unemployment recipients

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Transforming Emerging Corridors with Great Streets

Existing and new small businesses may be eligible for Great Streets Small Business Grants ,which awards competitive grants of up to $50,000 per small business.

Neighborhood Prosperity Fund
Legacy Business Grant
Dream Grants (https://dslbd.dc.gov/service/current-grant-opportunities)
District Capitalized (DSLBD)

The Small Retailer Property Tax Relief Credit provides qualifying DC small businesses up to$5,000 in tax relief. Eligibility information can be found at the Office of Tax & Revenue.

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Retail with Real Incentives

Through the Supermarket Tax Incentive, D.C. waives certain taxes and fees to supermarkets that locate in specific neighborhoods. Qualifying companies receive these benefits for 10 years:

Real property tax exemption
Business license fee exemption
Personal property tax exemption
Sales and use tax exemption on building materials necessary for construction

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Reduce Your Business Footprint and Costs

Building owners earn a rebate of $10 per square foot (up to $15 per square foot in targeted sub-watersheds) when they use green, vegetated roofs to manage storm water. Owners of all sizes–residential, commercial and institutional–are encouraged to apply, and there is no cap on project size. There are a lot more Green incentives. DC is a leader in “green” incentives. https://doee.dc.gov/service/solar-initiatives https://doee.dc.gov/greenbank https://doee.dc.gov/service/dcpace

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Reducing Financial Burdens of Capital Projects

The District of Columbia Revenue Bond Program provides below-market interest rate loans to help lower the costs associated with capital projects. Bonds may be used to assist in financing:

Construction and renovation of a building
Equipment acquisition
Land and building acquisition
Tenant improvements

501(c)(3) nonprofit organizations and developers of public-school facilities are eligible for tax-exempt bond financing. Businesses that qualify as manufacturers are eligible for up to$10 million of revenue bond financing. Projects eligible for funding include: