|Councilmember Sharon Ambrose
A BILL IN THE
COUNCIL OF THE DISTRICT OF COLUMBIA
Councilmember Sharon Ambrose introduced the following bill, which was referred to the
Committee on Finance and Revenue
To amend title 47 of the District of Columbia Code to provide a District of Columbia
income tax credit for certain older buildings.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as
the "Income Tax Credit for Restoration and Rehabilitation of Older Buildings Act of
Sec. 2. Title 47 of the District of Columbia Code is amended by adding
a new section 47-1806.7 to read as follows:
"§47-1806.7. Income tax credit for restoration and rehabilitation of older
"(a) For the purposes of this section, the term:
(1) "Eligible improvements" means significant improvements to, or restoration
or rehabilitation of, qualified properties, subject to the prior approval of the DCRA.
(2) "Qualified property" means an older building 50 or more years of age or a
building located in a designated historic district.
(3) "Qualified tenant" means a non-owner occupant who holds a lease of 5
years or longer on an income-producing qualified property or a portion of such qualified
"(b)(1) There is hereby granted a tax credit against the District of Columbia
income tax imposed on owners and qualified tenants of qualified properties for the purpose
of making eligible improvements to such qualified properties.
"(2) The tax credit authorized in paragraph (1) of this subsection shall be in the
amount of 25% of total preapproved expenditures on all eligible improvements commenced
after enactment of this section.
"(3) Any portion of an allowed credit that exceeds the annual income tax liability
due in the initial taxable year following completion of the eligible improvements may be
carried forward and applied to succeeding taxable years for up to years following the
initial credit year.
"(4) Any unused portion of this tax credit may be transferred to a new owner or
qualified tenant for the remaining life of the credit, subject to all applicable
limitations set forth in this section.
"(5) All or any portion of this tax credit may be transferred to an authorized
financial lending institution for the purpose of reducing the applicable rate of interest
on a loan obtained by an owner or qualified tenant for the purpose of financing the
purchase or lease of a qualified property, or a loan obtained by an owner or qualified
tenant for the purpose of financing eligible improvements.
"(c)(1) Persons seeking to obtain an income tax credit under this section shall
apply to and receive approval from the District of Columbia Department of Consumer and
Regulatory Affairs ("DCRA") for all eligible improvements before beginning
physical work on any such improvements.
"(2) Persons wishing to remain eligible to receive the full income tax credit may
not sell or otherwise dispose of a qualified property for 5 years following completion of
the eligible improvements. Persons selling or otherwise disposing of such qualified
properties prior to the termination of this 5 year period shall refund to the District of
Columbia all or a prorated amount of any credit or credits used in a manner prescribed by
"(3) This tax credit applies to eligible improvements which:
(A) Are located within the boundaries of the District of Columbia;
(B) Have been determined by the DCRA to be compatible with local preservation
(C) May include documented costs for interior rehabilitation.
"(4) This tax credit may be terminated if the property is converted so as not to
meet the requirements of this section, or the standards established by the DCRA during the
"(d) In order for an owner or qualified tenant of a qualified property to ensure
continued eligibility, he or she shall:
"(1) Maintain the general features and characteristics of the property, and seek
all necessary approvals for future improvements; and
"(2) Ensure that the property for which the credit was granted is in full
compliance with the city building code and housing code, unless otherwise approved by the
"(e)(1) An owner or qualified tenant of a qualified property shall file an
application for this credit with the DCRA and pay any required application fee. as
prescribed by the DCRA. If the qualified property is sold or leased to a new owner or
qualified tenant after the required 5-year period set forth in subsection (c)(2) of this
section, the new owner or qualified tenant shall file an application to retain any unused
portion of the credit in accordance with paragraph (c)(3) of this section.
"(2) The application for the tax credit shall contain information that the DCRA
considers necessary for determining the eligibility of the applicant.
"(3) The application shall include evidence of use and occupancy consistent with
the terms of this section in the case of previously vacant properties.
"(f) The Government of the District of Columbia shall impose a temporary abatement
on the real property tax assessment on all qualified properties undertaking eligible
improvements under this section for a period of 5 years following completion of such
"(g) The Mayor may issue rules and regulations to implement the provisions of this
section pursuant to the Administrative Procedure Act, approved October 21, 1968 (82
Stat.1204, D.C. Code §1-1501 et seq.).
"(h) The DCRA shall establish a process by which to settle disputed claims that
may arise in connection with the tax credit authorized by this section, subject to the
requirements of the Administrative Procedure Act. approved October 21, 1968 (82 Stat.
1204, D.C. Code §1-1501 et seq.).
Sec. 3. The Council adopts the fiscal impact statement in the
committee report as the fiscal impact statement required by section 602(c)(3) of the
District of Columbia Home Rule Act. approved December 24, 1973 (87 Stat. 813; D.C. Code
Sec. 4. This act shall take effect following approval by the Mayor (or
in the event of veto by the mayor, action by the Council to override the veto), approval
by the Financial Responsibility and Management Assistance Authority as provided in section
203(a) of the District of Columbia Financial Responsibility and Management Assistance Act
of 1995, approved April 17, 1995 (109 Stat. 116; D.C. Code §47-3392.3(a)), a 30-day
period of Congressional review as provided in section 602(c)(1) of the District of
Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Code
§1-233(c)(1)), and publication in the District of Columbia Register.