2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 18 - Income and Franchise Taxes › Subchapter VII - Tax on Corporations and Financial Institutions › § 47–1807.05. Reduction of tax credit for insurance premiums; exceptions

§ 47–1807.05. Reduction of tax credit for insurance premiums; exceptions.
(a) Except as provided in subsection (b) of this section, for taxable years beginning after December 31, 1988, the amount of tax payable under this chapter by an incorporated business approved as qualified under § 6-1504 shall be reduced by a credit equal to 50% of the insurance premiums attributable to a certified employee paid to insure employers against liability for compensation to residents of the District of Columbia under Chapter 15 of Title 32, for each of the first 24 months during which the qualified incorporated business has employed a certified employee.
(b) The credit under subsection (a) of this section shall not be allowed:
(1) Until the qualified incorporated business has employed the certified employee for at least 760 hours;
(2) For any calendar month in which the qualified incorporated business has not employed the certified employee for at least 90 hours;
(3) If the qualified incorporated business pays the certified employee less than the greater of the legal minimum wage or the wage the qualified incorporated business pays other employees in similar jobs;
(4) If the qualified incorporated business accords the certified employee lesser benefits or rights than it accords other employees in similar jobs;
(5) If the certified employee was employed as the result of the displacement, other than for cause, of another employee, or as the result of a strike or lockout, or 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;
(6) If the qualified incorporated business does not meet, with respect to the employment of the certified employee, all federal and District of Columbia laws and regulations, including those concerning health, safety, child labor, work/hour, and equal employment opportunity; or
(7) 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) If the amount of the credit allowable pursuant to this section exceeds the tax imposed by this chapter otherwise due from a qualified incorporated business, the amount of the credit not used as an offset against the tax may be carried forward or back for up to 5 years, except that no portion of the credit shall be:
(1) Carried back to any taxable year ending before January 1, 1990; or
(2) Claimed for any taxable year in which the qualified incorporated business was not located within an economic development zone or did not employ a certified employee.
(July 16, 1947, ch. 258, art. I, title VII, § 4; as added Oct. 20, 1988, D.C. Law 7-177, § 10(b), 35 DCR 6158; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Sept. 12, 2008, D.C. Law 17-231, § 41(k), 55 DCR 6758.)
Prior Codifications
1981 Ed., § 47-1807.5.
Section References
This section is referenced in § 6-1504 and § 47-1808.07.
Effect of Amendments
D.C. Law 17-231, in subsec. (b)(7), substituted “spouse or domestic partner” for “spouse”.
Cross References
Economic development zones, eligibility for tax incentives, see § 6-1504.
Editor's Notes
Mayor authorized to issue rules: See Historical and Statutory Notes following § 47-1803.03.