Source: https://development.code.dccouncil.us/dc/council/code/titles/47/chapters/18/subchapters/XVII/
Timestamp: 2019-04-23 16:29:24+00:00

Document:
D.C. Law Library - Subchapter XVII. Qualified High Technology Companies.
Subchapter XVIII. Qualified Social Electronic Commerce Companies.
Subchapter XVII. Qualified High Technology Companies.
§ 47–1817.04. Tax credit to Qualified High Technology Companies for retraining costs for qualified disadvantaged employees.
§ 47–1817.05. Tax credit to Qualified High Technology Companies for wages to qualified disadvantaged employees.
§ 47–1817.06. Tax on Qualified High Technology Companies.
§ 47–1817.07. Rollover of capital gain from qualified stock to other qualified stock.
§ 47–1817.07a. Tax on capital gain from the sale or exchange of a Qualified High Technology Company investment.
(B) A qualified asset shall include property which was a qualified asset in the hands of a prior holder.
(iii) Substantially all of the use of the property was in a Qualified High Technology Company.
(B) This paragraph shall apply to real property which is substantially improved by the taxpayer before January 1, 2003, and any land on which the property is located.
(ii) At least 51% of the additions to basis represent improvements which facilitate the conduct of a Qualified High Technology Company on the premises, including improvements to electrical wiring or telecommunications facilities serving the building.
(C) Attributable, directly or indirectly, in whole or in part, to a transaction with a related person.
(4) “Qualified employee” means a person who is employed in the District by a Qualified High Technology Company.
(V) Electronic and photonic devices and components for use in producing electronic, optoelectronic, mechanical equipment and products of electronic distribution with interactive media content, including microprocessors; logic chips; memory chips; lasers; printed circuit board technology; electroluminescent, liquid crystal, plasma, and vacuum fluorescent displays; optical fibers; magnetic and optical information storage; optical instruments, lenses, and filters; simplex and duplex data bases; and solar cells.
(III) A building or construction company.
(iii) A business entity located in the DC Ballpark TIF Area, as defined in [§ 2-1217.12a(a)].
(C) During substantially all of the taxpayer’s holding period for the interest, the partnership qualified as a Qualified High Technology Company.
(C) During substantially all of the taxpayer’s holding period for the stock, the corporation qualified as a Qualified High Technology Company.
This section is referenced in § 2-1221.01, § 10-803.01, § 47-462, § 47-1801.04, and § 47-1818.01.
The 2013 amendment by D.C. Law 19-211 substituted “employees in the District” for “employees” in (5)(A)(ii); and substituted “gross revenues earned in the District” for “gross revenues” in (5)(A)(iii).
The 2015 amendment by D.C. Law 20-155 rewrote (5)(A) and (5)(B)(i).
Assistance for qualified high technology companies, see § 2-1221.01 et seq.
For temporary (90 days) amendment of this section, see § 3 of Sports Wagering Lottery Emergency Amendment Act of 2018 (D.C. Act 22-630, Jan. 30, 2019, 66 DCR 1745).
For temporary (90 day) amendment of section, see § 201(a) of Ballpark Omnibus Financing and Revenue Tax Provisions Emergency Amendment Act of 2004 (D.C. Act 15-719, January 4, 2005, 52 DCR 1790).
For temporary (90 day) amendment of section, see § 201(a) of Ballpark Omnibus Financing and Revenue Tax Provisions Congressional Review Emergency Act of 2005 (D.C. Act 16-25, February 17, 2005, 52 DCR 2981).
For temporary (90 days) amendment of this section, see § 7182 of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).
For temporary (90 days) amendment of this section, see §§ 7172 and 7173 of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).
For temporary (90 days) addition of D.C. Law 20-155, § 7173, concerning applicability of D.C. Law 20-155, § 7172, see § 2(o) of the Fiscal Year 2015 Budget Support Clarification Emergency Act of 2014 (D.C. Act 20-461, November 6, 2014, 61 DCR 11784, 20 STAT 4368).
For temporary (90 days) amendment of this section, see §§ 7172 and 7173 of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).
For temporary (90 days) addition of D.C. Law 20-155, § 7173, concerning applicability of D.C. Law 20-155, § 7172, see § 2(o) of the Fiscal Year 2015 Budget Support Clarification Emergency Act of 2014 (D.C. Act 20-587, January 13, 2015, 62 DCR 1294, 21 STAT 758).
For temporary (90 days) addition of D.C. Law 20-155, § 7173, an applicability clause, see § 7016(z)(1) of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).
For temporary (225 days) addition of D.C. Law 20-155, § 7173, see § 2(u)(1) of the Fiscal Year 2015 Budget Support Clarification Temporary Amendment Act of 2014 (D.C. Law 20-179, March 7, 2015, 62 DCR 424).
Applicability of D.C. Law 20-155: Section 7173 of D.C. Law 20-155, as amended by D.C. Law 21-36, § 7024(e), provided that § 7173 of the act shall be applicable for tax years beginning after December 31, 2014.
(a) Except as provided in subsection (b) of this section, for taxable years beginning after December 31, 2000, a Qualified High Technology Company shall be allowed a credit against the tax imposed by § 47-1817.06 equal to 10% of the wages paid during the first 24 calendar months of employment to a qualified employee hired after December 31, 2000.
(4) If the qualified employee is a member of the board of directors of the Qualified High Technology Company or, directly or indirectly, owns a majority of its stock.
(c) If the amount of the credit allowable under this section exceeds the tax otherwise due from a Qualified High Technology Company, the unused amount of the credit may be carried forward for 10 years.
This section is referenced in § 47-1818.01 and § 47-1818.06.
(D) Is an employee hired, or relocated to the District, after December 31, 2000 and for which a Qualified High Technology company also is eligible to claim the Welfare to Work Tax Credit or the Work Opportunity Tax Credit under the Internal Revenue Code of 1986.
(iv) A reduction of the regular wages, benefits, or rights of other employees in similar jobs.
(b) For taxable years beginning after December 31, 2000, a Qualified High Technology Company shall be allowed a credit against taxes imposed by § 47-1817.06 for expenditures paid or incurred during the taxable year for retraining of a qualified disadvantaged employee.
(2) Worker retraining programs undertaken through an apprenticeship agreement approved by the District of Columbia Apprenticeship Council.
(d) The credit claimed under this section shall be limited to $20,000 for each qualified disadvantaged employee during the first 18 months of employment.
(2) Taken as a refundable credit in an amount up to 50% of the credit.
This section is referenced in § 47-1817.05.
For temporary (90 day) amendment of section, see § 10(i) of Technical Amendments Emergency Act of 2001 (D.C. Act 14-108, August 3, 2001, 48 DCR 7622).
(a) Except as provided in subsection (b) of this section, for taxable years beginning after December 31, 2000, a Qualified High Technology Company shall be allowed a credit against the tax imposed by § 47-1817.06 equal to 50% of the wages paid to a qualified disadvantaged employee, as defined in § 47-1817.04, during the first 24 calendar months of employment.
(2) If the Qualified High Technology Company accords the qualified disadvantaged employee lesser benefits or rights than it accords other employees in similar jobs.
(a)(1) Notwithstanding any other provision of this chapter, and in lieu of the tax on taxable income imposed by § 47-1807.02, subject to the credits applicable thereto, a tax on taxable income at a rate of 6% shall be imposed upon Qualified High Technology Companies which are corporations, except as provided for in paragraph (2) of this subsection.
(ii) On or after January 1, 2012, shall not be subject to the tax imposed by this chapter for 5 years after the date that the Qualified High Technology Company has taxable income.
(B) The total amount that each Qualified High Technology Company may receive in exemptions under this paragraph shall not exceed $15 million.
(b) The transfer of ownership of a Qualified High Technology Company shall not affect eligibility under this section.
(c) The Mayor may issue regulations to carry out the provisions of this section.
This section is referenced in § 47-340.26, § 47-1817.02, § 47-1817.03, § 47-1817.04, § 47-1817.05, § 47-1818.02, § 47-1818.06, and § 47-4630.
The 2013 amendment by D.C. Law 19-211 rewrote (a)(2).
(a) For purposes of this section, the term “qualified stock” means stock of a company which is qualified small business stock, as defined under section 1202(c) of the Internal Revenue Code of 1986, and issued by a Qualified High Technology Company.
(b)(1) In the case of a sale of qualified stock held by a taxpayer other than a corporation for more than 6 months and with respect to which the taxpayer elects the application of this section, gain from the sale shall be recognized to the extent the amount realized on the sale exceeds the cost of qualified stock purchased by the taxpayer during the 60-day period beginning on the date of the sale, reduced by the amount of the gain, not to exceed such cost, previously deferred under this paragraph.
(2) A taxpayer shall be treated as having purchased qualified stock if, but for paragraph (3) of this subsection, the adjusted basis of the property in the hands of the taxpayer would be its cost.
(3)(A) If gain from a sale is not recognized under paragraph (1) of this subsection, the unrecognized gain shall reduce the basis of qualified stock, in the order acquired, which is purchased by the taxpayer during the 60-day period described in paragraph (1) of this subsection.
(ii) Only the first 6 months of the taxpayer’s holding period for the stock referred to in this subsection shall be taken into account for purposes of applying section 1202(c)(2) of the Internal Revenue Code of 1986.
(c) This section shall not apply to any gain which is treated as ordinary income under the Internal Revenue Code of 1986.
(4) The investment is in common or preferred stock of the Qualified High Technology Company.
(2) A Qualified High Technology Company shall not pay additional taxes under this title to the District of Columbia until any proceedings to contest such taxes become final.
For temporary (90 day) addition of §§ 47-1850.01 to 47-1850.04, see § 2(e) of Homestead and Senior Citizen Real Property Tax Legislative Review Emergency Act of 2001 (D.C. Act 14-226, January 8, 2002, 49 DCR 668).
For temporary (90 day) addition of § 47-1818.01, see § 2(b) of CareFirst Economic Assistance Emergency Act of 2002 (D.C. Act 14-460, July 26, 2002, 49 DCR 8175).
For temporary (225 day) addition of section, see 2(b) of CareFirst Economic Assistance Temporary Act of 2002 (D.C. Law 14-246, March 25, 2003, law notification 50 DCR 2759).

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