2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 46 - Special Tax Incentives › § 47–4665.06. EAB Global, Inc. real property tax abatement

§ 47–4665.06. EAB Global, Inc. real property tax abatement.
(a) For the purposes of this section, the term:
(1) "Abatement period" means October 1, 2020, through September 30, 2030, the time during which the incentive will be applied.
(2) "Accumulated New District Resident Hires" means the goal for Net New District FTE Hires pursuant to the incentive agreement.
(3) "Annual reporting date" means September 30 preceding every tax year of the Abatement Period.
(4) "Company" means EAB Global, Inc.
(5) "Community Benefits Agreement" means the agreement entered into between the Mayor and the Company.
(6) "District resident" means an FTE whose principal place of residence is located within the District and who is on the annual reporting date subject to District personal income tax.
(7) "FTE" means an employee of the Company, or one of its subsidiaries or affiliates, who is eligible for the full employee healthcare benefits of the Company, or its applicable subsidiary or affiliate, in accordance with its standard policies.
(8) "Incentive agreement" means the agreement entered into between the Mayor and the Company outlining the Company's incentive requirement, which shall include incentives for hiring 350 Net New District FTE hires.
(9) "Lease commencement" means the date on which the Company occupies the Property with its employees.
(10) "Lease execution" means the date on which the Company signs the lease for the Property.
(11) "Net New District FTE Hires" means the aggregate number of District residents whose primary workplace is located in the District in excess of the resident employment baseline.
(12) "Project" means the initial tenant improvements to the premises located at the Property undertaken by the Company or its contractor to construct the space for the initial occupancy.
(13) "Property" means a portion of the real property located at 2445 M Street, N.W., known for tax and assessment purposes as Lot 871 in Square 0024, that is subject to real property taxation under Chapter 8 of this title.
(14) "Resident employment baseline" means the total number of District residents whose primary workplace is located in the District, as established in the incentive agreement.
(15) "Total employment baseline" means the total number of FTEs, whose primary workplace is located in the District, as established in the incentive agreement, as of the date of the lease execution.
(b) Subject to subsections (c) and (d) of this section, the real property taxes imposed by Chapter 8 of this title with respect to the Property shall be abated in an amount not to exceed $2.1 million per tax year during the abatement period. The abatement shall be apportioned equally between each tax year's installment billing. The abatement shall be non-refundable and shall not be credited to other tax years.
(c) The amount of the abatement authorized in subsection (b) of this section shall be determined as follows:
(1) If the Company exceeds the total employment baseline and meets the annual requirements for the Accumulated New District Resident Hires, as measured on the annual reporting date, then the abatement for each tax year shall equal $2.1 million;
(2) If the Company's annual total of Net New District FTE Hires is less than the requirements for the Accumulated New District Resident FTE Hires for the same period, but the Company exceeds the total employment baseline, then the abatement for each such tax year shall be calculated based on the ratio of actual Net New District FTE Hires to the requirement for Accumulated New District Resident Hires as of the annual reporting date; or
(3) If there are fewer FTEs than the total employment baseline as of the annual reporting date, then the abatement for each such tax year shall be zero.
(d) The Property shall be eligible for the abatement authorized in subsection (b) of this section each year of the abatement period as long as the Company:
(1) Maintains a lease for the premises located on the Property that meets the requirements in subsection (e) of this section;
(2) Maintains the total employment baseline;
(3) Fulfills the requirements of the Community Benefits Agreement; and
(4) Complies with subsection (h) of this section, including the requirements of the incentive agreement.
(e) The terms of the Company's lease for the Property shall meet the following requirements:
(1) The premises subject to the lease shall be located in the District.
(2) The lease execution shall occur on or before August 1, 2019.
(3) The term of the initial lease shall be at least 10 years.
(4) The premises leased by the Company shall be at least 148,750 square feet of net rentable area.
(f) During the abatement period, the Property shall not be eligible for the abatement authorized under § 47-811.03.
(g) The Company shall be deemed to be in compliance with [part A of subchapter X of Chapter 2 of Title 2], if the Mayor, pursuant to [§ 2-219.03a], determines that the Company is in compliance with the hiring requirements of subsection (c) of this section and the incentive agreement.
(h)(1) On or before October 31, the Company shall provide the Mayor with the following information pertaining to the previous tax year:
(A) A detailed report as of the annual reporting date that identifies the:
(i) Number of employees whose primary workplace is located in the District;
(ii) Number of District resident employees;
(iii) Median salary of the District resident employees;
(iv) Median tenure of District resident employees; and
(v) Total employment baseline; and
(B) A certification of compliance with the Community Benefits Agreement.
(2) The Company shall comply with requirements of [§ 2-218.46] with regard to the Project.
(i) Within 30 days of [April 11, 2019], the Company shall enter into a Community Benefits Agreement with the Mayor that shall include requirements for training, employment, and youth development and free services to underserved communities in the District.
(j) In each year of the abatement period, the Mayor shall certify to the Office of Tax and Revenue the Property's eligibility for the abatement set forth in subsection (b) of this section. The Mayor's certification shall include:
(1) The Company's taxpayer identification number and the identity of any related entity that is occupying all or part of the eligible premises, including the entity's taxpayer identification number;
(2) A description of the eligible property, by street address and square, lot, parcel, or reservation number, and a description of the eligible premises, including the number of floors, location, and square footage;
(3) The date of lease commencement and the term of the lease; and
(4) Any other information that the Mayor considers necessary or appropriate.
(k)(1) Upon receiving the verifying documents from the Company, as required by subsection (j) of this section, the Mayor shall certify to the Office of Tax and Revenue by December 1 following each annual reporting date the Property's eligibility to receive an abatement pursuant section (b) of this section.
(2) The Office of Tax and Revenue shall process the abatement before the first semi-annual billing of the tax year.
(Apr. 11, 2019, D.C. Law 22-302, § 2(c), 66 DCR 2030; Mar. 19, 2020, D.C. Law 23-68, § 12(c), 67 DCR 743.)
Applicability
Section 16 of D.C. Law 23-68 provided that the changes made to this section by D.C. Law 23-68 shall apply as of October 1, 2019.
Emergency Legislation
For temporary (90 days) amendment of this section, see § 12(c) of Fiscal Year 2020 Budget Support Clarification Second Emergency Amendment Act of 2019 (D.C. Act 23-201, Jan. 22, 2020, 67 DCR 731).
For temporary (90 days) amendment of this section, see § 4(b) of Fiscal Year 2020 Budget Support Clarification Emergency Amendment Act of 2019 (D.C. Act 23-165, Nov. 20, 2019, 66 DCR 15351).
Temporary Legislation
For temporary (225 days) amendment of this section, see § 5(b) of Fiscal Year 2020 Budget Support Clarification Temporary Amendment Act of 2019 (D.C. Law 23-48, Jan. 28, 2020, 66 DCR 16179).