DC BUSINESS INCENTIVES Washington, dc Economic partnership & U.S. small business association

1. DC BUSINESS INCENTIVES Washington, dc Economic partnership & U.S. small business association entrepreneur road map SERIES August 13th, 2014

2. 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 • Dept. of Employment Services Assistance with hiring and training employees • Business Incentives Designed to build the tax base and create jobs for District residents 2

3. Business Incentives DC Tech Incentives Supermarket Tax Incentives Great Streets Small Business Capital Improvement Grants Digital DC Technology Fund 3

4. DC Tech Incentives • 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 4

5. DC Tech Incentives • 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 • 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 5

6. DC Tech Incentives • 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 6

7. 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

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 • 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

10. 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

11. DC Business Incentives Maps http://geospatial.dcgis.dc.gov/incentive/ Identify available business incentives at a specific address Find eligible areas for each business incentive See owner and zoning for each parcel 11

12. Great Streets Small Business Capital Improvement Grants • 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 12

13. Great Streets Small Business Capital Improvement Grants • 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 13

14. Great Streets Small Business Capital Improvement Grants • 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 14

15. Digital DC Technology Fund • 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 15

16. Digital DC Technology Fund • 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 16

17. Questions & Answers Thank you! For more information, please contact Polina Bakhteiarov polina.bakhteiarov@dc.gov (202) 741-8952 17