With the recent creation of the District of Columbia Enterprise Zone, businesses and individuals now may take advantage of more that $1.2 billion in federal tax benefits available for capital projects and investments in our Nation's Capital. These include: an annual $3,000 employer wage credit for each worker residing in the District; a zero percent capital gains tax rate on certain investment earnings; a personal property expensing allowance ranging from $38,500 to $44,000; and up to $15 million in tax-exempt financing for each qualified capital project. 

Eligibility for these tax incentives is determined by individual tax status, and may vary with the location and type of taxpayer, and the nature of the investment or activity. Under this special program, taxpayers may claim most tax benefits simply by filing the appropriate form with their annual federal tax return. Entities seeking to obtain tax-exempt bond financing, should contact the District of Columbia Revenue Bond Program for expedited processing.

To determine the precise impact of these provisions on individual taxpayers, the reader is encouraged to consult a tax advisor or refer to Internal Revenue Service (IRS) Publication 954, Tax Incentives for Empowerment Zones and Other Distressed Communities or visit 
Internal Revenue Service website. For the location of the DC Enterprise Zone, contact the DC Revenue Bond Program at (202) 727-6365 and (202) 727-0377 or visit their website.

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