2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 18 - Income and Franchise Taxes › Subchapter VIII - Tax on Unincorporated Businesses › § 47–1808.08. Tax credit for unincorporated businesses that provide an employee paid leave to serve as an organ or bone marrow donor

§ 47–1808.08. Tax credit for unincorporated businesses that provide an employee paid leave to serve as an organ or bone marrow donor.
(a) For the purposes of this section, the term “donor”” means an individual who makes a gift of an organ, including eyes, or bone marrow.
(b)(1) If in addition to any medical, personal, or other paid leave, including credit for time of service, provided by an unincorporated business, the unincorporated business provides an employee a paid leave of absence to serve as an organ or bone marrow donor, the unincorporated business may claim a credit equal to 25% of the regular salary or wages to the employee paid during the taxable year for that leave of absence, not to exceed 30 days for an organ donation and 7 days for a bone marrow donation.
(2) If the unincorporated business elects to claim the credit, an amount equal to the salary or wages upon which the 25% credit is computed shall not be allowed as a deduction.
(3) The credit shall not reduce the minimum tax liability of $100 [now $250] under § 47-1808.03(b).
(c) This section shall not apply if the employee is eligible for leave under the Family and Medical Leave Act of 1993, approved February 5, 1993 (107 Stat. 6; 29 U.S.C. § 2601 et seq.).
(d) The Chief Financial Officer or his delegate shall promulgate regulations as may be necessary and appropriate to carry out provisions of this section.
(Mar. 6, 2007, D.C. Law 16-211, § 2(c), 53 DCR 9852; Mar. 25, 2009, D.C. Law 17-353, § 145, 56 DCR 1117.)
Effect of Amendments
D.C. Law 17-353 validated a previously made technical correction in subsec. (b)(3).
Emergency Legislation
For temporary (90 day) addition, see § 2(d) of Employment of Returning Veteran’s Tax Credit Emergency Act of 2008 (D.C. Act 17-654, January 6, 2009, 56 DCR 933).
Temporary Legislation
Section 2(d) of D.C. Law 17-384 added a section to read as follows:
“§ 47-1808.09. Tax credit for hiring qualified veterans.
“(a) For the purposes of this section, the term:
“(1) ‘Armed Forces’ shall include any branch of the United States Military, including the Army, Navy, Marines, Air Force, Coast Guard, or any National Guard or reserve deployment lasting 6 continuous months or longer.
“(2) ’Qualified veteran’ means an individual subject to the District’s personal income tax who:
“(A) Has previously served in a branch of the Armed Forces and who was honorably or generally discharged;
“(B) Is not currently employed in a facility owned or operated by the District business with an exemption under § 47-4605;
“(C) Is hired to fill a position of indefinite duration consisting of a minimum of 35 hours per week for not less than 48 weeks per year;
“(D) Is hired within 5 years after being discharged from the Armed Forces or within 2 years of a continuous 6-month National Guard deployment;
“(E) Is a District resident at the time of hiring and maintains District residency for the duration of the 2-year tax credit period; and
“(F) Is not currently employed in a facility owned or operated by the District business seeking the tax credit under this section.
“(b) For taxable years beginning on or after January 1, 2009, an employer shall be allowed a credit against the tax imposed by § 47-1808.03 in an amount equal to 10% of the wages paid by the employer to a qualified veteran during the first 24 calendar months in which the employer employs the qualified veteran. The credit under this section shall not exceed $5,000 in the aggregate for each qualified veteran who is employed.
“(c) The maximum annual credit allowed under this section shall not exceed the lesser of:
“(1) Ten percent of the wages paid to a qualified veteran during the tax year in which the credit is claimed;
“(2) The total income taxes imposed on the business during the tax year in which the credit is sought; or
“(3) A total of $2,500 for each eligible veteran.
“(d) The credit under subsection (b) of this section shall not be valid:
“(1) For any wages paid in a calendar month in which the employer has not employed the qualified veteran for at least 90 hours;
“(2) If the employer pays the qualified veteran less than the greater of the legal minimum wage or the wage the employer pays other employees in similar jobs;
“(3) If the employer accords the qualified veteran lesser benefits or rights than the employer accords other employees in similar jobs;
“(4) If the qualified veteran was employed as the result of the displacement, other than for cause, of another employee, or as the result of a strike or lockout, a layoff in which other employees are awaiting recall, or a reduction of the regular wages, benefits, or rights of other employees in similar jobs;
“(5) If the employer does not meet, with respect to the employment of the qualified veteran, all federal and District laws and regulations, including those concerning health, safety, child labor, work/hour, and equal employment opportunity;
“(6) If the qualified veteran is a member of the board of directors of the 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 as any relative listed in the definition of dependent in section 152 of the Internal Revenue Code of 1986 without regard to source of income; or
“(7) If the qualified veteran moves his or her residence outside the District of Columbia during the 24 month period.”.
Section 5(b) of D.C. Law 17-384 provided that the act shall expire after 225 days of its having taken effect.
Editor's Notes
Applicability: Section 3 of D.C. Law 16-211 provided:
“(a) The Chief Financial Officer shall include the fiscal effect of the legislation in its next revised quarterly revenue estimate.
“(b) Section 2 shall not take effect unless the fiscal effect of the legislation is funded in a revised quarterly revenue estimate of the Chief Financial Officer in an amount sufficient to account for its fiscal effect.”