1. Mayor Vincent C. Gray M. Jeffrey Miller Interim Deputy Mayor for Planning & Economic Development DC BUSINESS INCENTIVES WASHINGTON, DC ECONOMIC PARTNERSHIP & U.S. SMALL BUSINESS ASSOCIATION ENTREPRENEUR ROAD MAP SERIES August 13 th, 2014

2. The District offers many resources for entrepreneurs Dept. of Small & Local Business Development Assistance with connecting to local, federal, and global opportunities Small Business Resource Center Assistance with navigating the District’s business regulations Business Incentives Designed to build the tax base and create jobs for District residents Dept. of Employment Services Assistance with hiring and training employees 2

3. DC Tech Incentives Supermarket Tax Incentives Great Streets Small Business Capital Improvement Grants Digital DC Technology Fund Business Incentives 3

4. OVERVIEW Goal: reduce the cost of doing business for high- technology companies Incentives include tax credits for retraining, wages, and relocation costs, and multiple tax exemptions and reductions DC Tech Incentives 4

5. TAX BENEFITS 10-year exemption from personal property sales and use tax 10-year exemption from personal property tax 5-year exemption from corporate franchise tax up to $15 million Deduction for personal property expenses and/or leasehold improvements up to $40,000 over 24 months Rollover (deferral) of certain capital gains Reduction in real property tax DC Tech Incentives TAX CREDITS Cost of retraining “qualified disadvantaged employees” (up to $20,000 per employee in first 18 months of employment) [Corporations only] Wages paid to employees in first 24 months of employment For “qualified disadvantaged employees” – 50% of wages up to $15,000 per employee For “qualified employees” – 10% of wages up to $5,000 per employee [Corporations only] Payments/reimbursements of employee relocation costs up to $7,500 per employee depending on residency and up to $1 million total annual credit 5

6. DOES MY BUSINESS QUALIFY? A Qualified High Technology Company (QHTC) is one which: Is an individual or entity organized for profit Maintains an office, headquarters, or base of operations in DC Has 2 or more employees in DC Derives the majority of its revenue from qualifying high technology activities Does not derive the majority of its revenue from operating a retail store or electronic equipment facility in DC Is registered with the DC Government as a business in DC Is current in all DC Government filing requirements and payment obligations DC Tech Incentives 6

7. HOW DO I APPLY? Self-certify through the DC Office of Tax and Revenue: http://otr.cfo.dc.gov/page/qualified-high-tech- companies-tax-forms http://otr.cfo.dc.gov/page/qualified-high-tech- companies-tax-forms 7

8. Supermarket Tax Incentives OVERVIEW Goal: encourage new fresh food markets to open in areas that lack this amenity Benefits: 10-year exemption from real property tax 10-year exemption from personal property tax 10-year exemption from license fee Exemption from sales and use tax on building materials purchased in DC 8

9. Supermarket Tax Incentives DOES MY BUSINESS QUALIFY? Located in a HUBZone or one of the following Census tracts: 18.01 33.01 95.05 95.07 95.08 Licensed as a grocery store Certificate of Occupancy with Approved Zoning Code Use as a grocery store Inventory must include full line of meat, seafood, fruits, vegetables, dairy products, dry groceries, household products, and sundries Active First Source Agreement with DC Department of Employment Services and proof of compliance 9

10. Supermarket Tax Incentives HOW DO I APPLY? Contact Polina Bakhteiarov at polina.bakhteiarov@dc.gov or (202) 741-8952 for location eligibility verification letter and full list of requirements polina.bakhteiarov@dc.gov 10

11. http://geospatial.dcgis.dc.gov/incentive/ Find eligible areas for each business incentive Identify available business incentives at a specific address See owner and zoning for each parcel DC Business Incentives Maps 11

12. OVERVIEW Goal: support existing small businesses, attract new small businesses to the District, and transform emerging commercial corridors into thriving and inviting neighborhood centers Reimbursable grant of up to $85,000 for small business owners to improve their place of business Build-out of new improvements Renovations of existing improvements (both interior and exterior) Façade improvements Equipment upgrades Great Streets Small Business Capital Improvement Grants 12

13. DOES MY BUSINESS QUALIFY? Located within or along the boundary of a Great Streets corridor Be a registered business in good standing with local and federal agencies Retain site control of the property either through fee simple ownership or an executed contract or lease with the property owner with a minimum unexpired term of at least two (2) years Provide proof of property and liability insurance Ineligible business types: Liquor stores Nightclubs Bars On H Street NE only: restaurants, phone stores, businesses with 20+ locations in the United States Great Streets Small Business Capital Improvement Grants 13

14. HOW DO I APPLY? Verify location eligibility using interactive mapping tool at greatstreets.dc.govgreatstreets.dc.gov Email greatstreets@dc.gov to be added to the mailing list and receive an alert when the Fiscal Year 2015 application becomes availablegreatstreets@dc.gov Great Streets Small Business Capital Improvement Grants 14

15. OVERVIEW Goal: bolster the District’s burgeoning technology sector by supporting the attraction and retention of early and growth stage technology ventures Provide working capital and customized mentorship to companies that relocate to the 7 th Street/Georgia Avenue Great Streets corridor (Digital DC Tech Opportunity Corridor) Part of Digital DC – a marketing campaign and economic development initiative that promotes Washington, DC as the leading community in the innovation and high-tech economy Digital DC Technology Fund 15

16. PILOT INVESTMENT ROUND Summer 2014 $1 million total Non-dilutive grants $25,000 - $200,000 per grantee Grantees provided with training, access to networks, capital, and other resources 140 applicants Award announcements to be made in Fall 2014 Digital DC Technology Fund 16

17. Thank you! For more information, please contact Polina Bakhteiarov polina.bakhteiarov@dc.gov (202) 741-8952 Questions & Answers 17