D.C. would offer eligible tech companies tax breaks for hiring

Eligible companies would have to hire and report at least 50 qualifying workers in D.C. each year. Counted workers cannot have worked for the company before 2025. Their ongoing jobs must require at least 35 hours weekly for at least 50 weeks yearly, with at least six months of work in D.C. Excluded workers include board members, owners of more than 5%, their spouses or dependents, and hires excluded by the referenced tax provision. Companies must remain eligible throughout the tax-break period and certify their qualifying hires to the Department of Employment Services. Companies must publicly post job openings through the designated D.C. service and join a District-led innovation partnership if asked. The annual hiring and continuing eligibility requirements would apply throughout the abatement period, which starts October 1, 2027.

D.C. would reduce eligible office property taxes using a wage credit adjusted for the share of new hires who are residents. For this calculation, residents must have their principal home in D.C. and be subject to D.C. personal income tax. The starting credit would equal 10% of each qualifying hire’s first 24 calendar months of wages, capped at $5,000 per hire per tax year. Companies would receive the full yearly credit if at least 50% of counted hires are residents, 75% if the share is 40% to under 50%, and half if it is below 40%. Total accumulated credits would be capped at $15 million per company; other company and property eligibility rules would still apply. The abatement period would start October 1, 2027; the tax reduction would continue only until the available credit is exhausted or forfeited.

Eligible offices would have to meet continuing occupancy, lease and ownership restrictions. The program covers D.C. corporate offices owned or leased by eligible companies, which must continue occupying eligible office property throughout the abatement period. Leases must last at least 10 years, and owners must pass the tax savings to the eligible tenant. Company-owned properties could not be sold, transferred, exchanged, or otherwise conveyed during the abatement period. Leases could be assigned only to a related high-tech entity: one controlling, controlled by, or under common control with the company, or a successor through merger, consolidation, or operation of law. Companies could not lease or sublease more than half the gross floor area to unrelated entities. These property conditions would apply throughout the tax-break period.

The Mayor would verify eligibility and certify the company, property and abatement start date to tax officials. For leased or subleased offices, the benefit would cover only the company’s occupied share of the building’s potentially occupiable area. A company that has filed for bankruptcy in connection with its business would be ineligible. This abatement could not be combined with the separate commercial-property abatement under section 47-811.03. The Mayor would certify verified eligibility on application. Failure to meet the continuing conditions would immediately end the abatement.

The economic development deputy mayor would convene a Tech for Good working group. The group would include D.C. officials and representatives from education, business, workforce and community organizations. It would recommend marketing strategies, ways to attract businesses and connect D.C. residents to tech jobs, and ways to address barriers to sector growth. It would report its findings and recommendations to the Council within one year after this title takes effect. The bill would take effect after mayoral approval or a Council veto override and a 30-day congressional review.