Source: https://development.code.dccouncil.us/dc/council/code/titles/47/chapters/18/subchapters/VII/
Timestamp: 2019-04-21 08:31:04+00:00

Document:
D.C. Law Library - Subchapter VII. Tax on Corporations and Financial Institutions.
§ 47–1807.01. Tax on corporations — Definitions.
§ 47–1807.02. Tax on corporations — Levy and rates.
§ 47–1807.10. Tax on corporations — Credits — Alternative fuel infrastructure credit.
§ 47–1807.11. Tax on corporations — Credits — Alternative fuel vehicle conversion credit.
§ 47–1807.14. Retailer property tax relief credit.
(1) “Corporation” shall, for taxable years beginning after December 31, 1980, include financial institutions.
(2) “Taxable income” means the amount of net income derived from sources within the District within the meaning of §§ 47-1810.01 to 47-1810.03.
(3) “Taxable period” means a taxable year or a portion of a taxable year.
This section is referenced in § 6-1504 and § 47-1801.04.
(3) For the taxable years beginning after December 31, 2002, a tax at the rate of 9.5% upon the taxable income of every corporation, whether domestic or foreign.
(3A) A surtax at the rate of 2.5% on the tax determined under paragraph (2) or (3) of this subsection, as applicable, for any tax period beginning after September 30, 1992.
(3B) A surtax at the rate of 2.5%, separate from and in addition to, the surtax imposed by paragraph (3A) of this subsection, on the tax determined under paragraph (2) or (3) of this subsection, as applicable, for any tax period beginning after September 30, 1994.
(4) For the taxable years beginning after December 31, 2003, a tax at the rate of 9.975% upon the taxable income of every corporation, whether domestic or foreign.
(8) For taxable years beginning after December 31, 2017, a tax at the rate of 8.25% upon the taxable income of every corporation, whether domestic or foreign.
(b) The minimum tax payable under this section shall be $250. If District gross receipts are greater than $1 million, the minimum tax payable shall be $1,000. Corporations or financial institutions including International Banking Facilities shall not be exempt from the minimum tax payable under this section even if the business or source income is exempt under other provisions of this chapter.
(c) The taxes imposed by this section shall, during the 3 tax years beginning after June 30, 1981, be subject to the transition rules provided in § 47-2507.
This section is referenced in § 10-1203.07, § 32-241, § 47-340.26, § 47-1807.07, § 47-1807.08, § 47-1812.08, § 47-1817.06, § 47-4215, § 47-4602, and § 50-1501.02.
D.C. Law 13-91 amended subsec. (a)(4) by inserting the phrase “, and beginning on or before December 31, 2002” after the phrase “beginning on or after October 1, 1994”.
D.C. Law 14-190, in subsec. (a), rewrote pars. (3) and (4).
For temporary (90 days) amendment of this section, see § 7172(e) of Fiscal Year 2018 Budget Support Congressional Review Emergency Act of 2017 (D.C. Act 22-167, Oct. 24, 2017, 64 DCR 10802).
For temporary (90 days) amendment of this section, see § 7172(e) of Fiscal Year 2018 Budget Support Emergency Act of 2017 (D.C. Act 22-104, July 20, 2017, 64 DCR 7032).
For temporary (90 days) amendment of this section, see § 2(a) of Franchise Tax Clarification Emergency Amendment Act of 2016 (D.C. Act 21-402, May 19, 2016, 63 DCR 7923).
For temporary (90 day) amendment of section, see §§ 3702 to 3704 of Fiscal Year 2002 Budget Support Emergency Act of 2001 (D.C. Act 14-124, August 3, 2001, 48 DCR 7861).
For temporary (90 day) amendment of section, see §§ 1002(a) and 1003 of Fiscal Year 2003 Budget Support Amendment Emergency Act of 2002 (D.C. Act 14-544, December 4, 2002, 49 DCR 11700).
For temporary (90 day) amendment of section, see §§ 1002(a) and 1003 of the Fiscal Year 2003 Budget Support Amendment Congressional Review Emergency Act of 2003 (D.C. Act 15-27, February 24, 2003, 50 DCR 2151).
For temporary (90 day) amendment of section, see § 802(c) of Fiscal Year 2003 Budget Support Emergency Act of 2002 (D.C. Act 14-453, July 23, 2002, 49 DCR 8026).
For temporary (90 day) amendment of section, see §§ 1002(a) and 1003 of Fiscal Year 2003 Budget Support Amendment Second Congressional Review Emergency Act of 2003 (D.C. Act 15-103, June 20, 2003, 50 DCR 5499).
For temporary (90 days) amendment of this section, see § 7022(c)(7) 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 § 7012(c)(7) 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) amendment of this section, see § 7012(c)(7) 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) amendment of this section, see § 10(b) of the Fiscal Year 2016 Budget Support Clarification Emergency Amendment Act of 2016 (D.C. Act 21-292, Jan. 27, 2016, 63 DCR 1211).
Section 2(b) of D.C. Law 19-53, in section 8074 of D.C. Law 19-21, substituted “for tax years beginning after December 31, 2010” for “as of December 31, 2010”.
Short title: Section 8071 of D.C. Law 19-21 provided that subtitle H of title VIII of the act may be cited as “Minimum Corporate and Unincorporated Franchise Tax Payable ”.
Section 4103(b) of D.C. Law 14-28 provides: “Section 4102(b) shall apply for any tax period beginning after September 30, 1994”.
Expiration of §§ 301, 302 and 303 of D.C. Law 10-188: Section 306(a) of D.C. Law 10-188 provided that the act shall expire 2 years after September 28, 1994, if the Board does not submit final financial requirements and a feasibility analysis to the Mayor and the Council as provided by § 10-1202.06(h).
This section is referenced in § 10-1203.07.
Expiration of §§ 301, 302 and 303 of D.C. Law 10-188: For temporary amendment of D.C. Law 10-188, § 306(a), see § 2(b) of the Washington Convention Center Authority Act of 1994 Time Extension Emergency Act of 1996 (D.C. Act 11-509).
(a) Except as provided in subsection (b) of this section, for taxable years beginning after December 31, 1988, any incorporated business approved as qualified pursuant to § 6-1504 shall be allowed a credit against the tax imposed by this chapter in an amount equal to 50% of the wages paid by the qualified incorporated business to an employee certified by the Mayor under § 6-1504(c), during the first 24 calendar months in which the employer employed the certified employee.
(8) If the certified employee is a member of the board of directors of the qualified incorporated business, directly or indirectly owns a majority of its stock, or is related to a member of the board of directors or a majority stockholder as a spouse or domestic partner or as any relative listed in the definition of “dependent” in § 152 of the Internal Revenue Code of 1986 (26 U.S.C. § 152), without regard to source of income.
(c) Whenever a qualified incorporated business is prevented from claiming the credit for wages paid because the certified employee was not employed for the period of time required by subsection (b)(2) and (3) of this section, the credit for wages paid may be claimed against the tax for the immediately succeeding taxable period in which the period of employment satisfies the requirement of subsection (b)(2) of this section.
D.C. Law 17-231, in subsec. (b)(8), substituted “spouse or domestic partner” for “spouse”.
Economic development zones, available incentives, eligibility for corporate franchise tax credits, certified employees, see § 6-1504.
(a) For taxable years beginning after December 31, 1988, any qualified incorporated business under § 6-1504 having taxable income that includes rent charged to a licensed, non-profit child development center shall be allowed a credit against the tax imposed by this chapter in an amount equal to the amount by which the fair market value of the space leased to the licensed, nonprofit child development center exceeds the rent charged by the business to the licensed, non-profit child development center.
(B) When a licensed, nonprofit child development center is the sole lessee occupying space in the building, or when the building contains no space comparable to that occupied by the licensed, nonprofit child development center, an amount as determined by the Mayor with reference to the average rent charged to tenants for occupancy of comparable space in other buildings in the economic development zone.
(2) “Child development center” means a child development center as that term is defined in § 4-401(2).
(B) Any percentage of household income referenced in this title (e.g., 80% of household income) shall be determined through a direct mathematical calculation and shall not take into account any adjustments made by the United States Department of Housing and Urban Development for the purposes of the programs it administers.
(C) Which is certified by the Mayor.
(E) Has a household income equal to or less than 120% of the area median income.
(B) Has one or more employees.
(5) “Homeownership assistance” means money provided to an eligible employee by an employer for the down payment or other acquisition costs for the purchase of the principal place of residence of the employee.
(6) “New homebuyer” means an employee (and, if married or in a domestic partnership, the employee’s spouse or domestic partner) who did not own a principal place of residence in the District during the previous 12 months.
(D) The eligible employee is a new homebuyer.
(2) If the homeownership assistance consists of providing a loan and then discharging all or a portion of the loan upon completion of a required period of employment, the homeownership assistance shall be treated as provided at the time that the loan, or the portion of the loan, is discharged.
(B) A copy of the certification of the employer’s employer-assisted affordable homeownership assistance program under which the homeownership assistance was provided.
This section is referenced in § 47-1803.02 and § 47-1808.07.
D.C. Law 17-231, in subsec. (a)(6), substituted “(and, if married or in a domestic partnership, the employee’s spouse or domestic partner)” for “(and, if married, the employee’s spouse)”.
A job growth tax credit shall be allowed as provided in subchapter VII-A of this chapter [§ 47-1807.51 et seq.].
(a) Beginning with the taxable year after December 31, 2013, through the taxable year ending December 31, 2026, there shall be allowed against the tax imposed on an eligible applicant by § 47-1807.02 a credit in the amount of 50% of the equipment and labor costs directly attributable to the purchase and installation of alternative fuel storage and dispensing or charging equipment on a qualified alternative fuel vehicle refueling property.
(c) The credit claimed under this section in any one tax year may not exceed the taxpayer’s tax liability under § 47-1807.02 for that year.
(d) If the amount of the tax credit permitted under this section exceeds the tax otherwise due under § 47-1807.02, the amount of the credit not used may be carried forward for up to 2 tax years. The credit shall not be refundable.
(e) If the alternative fuel storage and dispensing equipment or charging equipment on a qualified alternative fuel vehicle refueling property is no longer used to dispense or sell alternative fuel to the public, any unused tax credit shall be forfeited and the taxpayer may not claim a tax credit for the portion of the tax year after the date on which the alternative fuel storage and dispensing equipment was no longer used to dispense or sell alternative fuel to the public.
(1) “Alternative fuel” shall have the same meaning as provided in § 47-1806.12(f)(1).
(2) “Eligible applicant” means a corporation that is the owner or lessee of a qualified alternative fuel vehicle refueling property.
(3) “Qualified alternative fuel vehicle refueling property” shall have the same meaning as provided in § 47-1806.12(f)(3).
For temporary (90 days) addition of this section, see § 7082(c) 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) addition of this section, see § 7072(c) 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 this section, see § 7072(c) 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).
(a) Beginning with the taxable year after December 31, 2013, through the taxable year ending December 31, 2026, there shall be allowed against the tax imposed by § 47-1807.02 a credit in the amount of 50% of the equipment and labor costs directly attributable to the cost to convert a motor vehicle licensed in the District that operates on petroleum diesel or petroleum derived gasoline to a motor vehicle that operates on an alternative fuel, not to exceed $19,000 per vehicle.
(b) The credit claimed under this section in any one tax year may not exceed the taxpayer’s tax liability under § 47-1807.02 for that year. The credit shall not be refundable.
Applicability of D.C. Law 21-242: § 4 of D.C. Law 21-242 provided that the creation of this section by § 3(b) of D.C. Law 21-242 is subject to the inclusion of the law’s fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.
(2) A tax credit equal to the total Class 2 real property taxes, pursuant to § 47-811, paid by the qualified corporation for a qualified retail owned location during the taxable year not to exceed the lesser of the real property tax paid during the taxable year or $5,000.
(c) The credit claimed under this section in any one taxable year may exceed the qualified corporation's tax liability, including any minimum tax due under § 47-1807.02(b), under this chapter for that taxable year and shall be refundable to the corporation claiming the credit.
For temporary (90 days) amendment of this section, see § 5(a) of Fiscal Year 2019 Budget Support Clarification Congressional Review Emergency Amendment Act of 2018 (D.C. Act 22-552, Dec. 31, 2018, 66 DCR 251).
For temporary (90 days) amendment of this section, see § 5(a) of Fiscal Year 2019 Budget Support Clarification Emergency Amendment Act of 2018 (D.C. Act 22-488, Oct. 22, 2018, 65 DCR12046).
For temporary (90 days) amendment of this section, see § 2(b)(1) of Fiscal Year 2019 Budget Support Clarification Emergency Amendment Act of 2018 (D.C. Act 22-488, Oct. 22, 2018, 65 DCR12046).
For temporary (90 days) creation of this section, see § 7252(b) of Fiscal Year 2019 Budget Support Congressional Review Emergency Act of 2018 (D.C. Act 22-458, Oct. 3, 2018, 65 DCR 11212).
For temporary (90 days) creation of this section, see § 7252(b) of Fiscal Year 2019 Budget Support Emergency Act of 2018 (D.C. Act 22-434, July 30, 2018, 65 DCR 8200).
For temporary (225 days) amendment of this section, see § 4(a) of Fiscal Year 2019 Budget Support Clarification Temporary Amendment Act of 2018 (D.C. Law 22-218, Feb. 22, 2019, 65 DCR 12977).
Applicability of D.C. Law 22-212: § 301 of D.C. Law 22-212 provided that the creation of this section by § 101(c) of D.C. Law 22-212 is subject to the inclusion of the law’s fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.

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