1. (a) For the purposes of this section, the term:

   1. (1) "Base year" means the calendar year beginning January 1, 2024, or the calendar year beginning one calendar year before the calendar year in which the new dollar amount of the maximum credit amount or income threshold amount shall become effective, whichever is later.
   2. (2) "Consumer Price Index" means the average of the Consumer Price Index for All Urban Consumers for the Washington-Arlington-Alexandria, DC-MD-VA-WV Metropolitan Statistical Area (or such successor metropolitan statistical area that includes the District), or any successor index, as of the close of the 12-month period ending on July 31 of such calendar year.
   3. (3) "Cost-of-living adjustment" means an amount, for any calendar year, equal to the dollar amount set forth in this section multiplied by the difference between the Consumer Price Index for the preceding calendar year and the Consumer Price Index for the base year, divided by the Consumer Price Index for the base year.

   4. (4) "Income threshold amount" means:

      1. (A) For tax years beginning after December 31, 2017, and before January 1, 2024, $2,500,000;
      2. (B) For the tax year ending December 31, 2024, $3,000,000; and
      3. (C) For tax years beginning after December 31, 2024, $3,000,000, increased annually pursuant to the cost-of-living adjustment (if the adjustment does not result in a multiple of $1,000, rounded down to the next multiple of $1,000).

   5. (5) "Maximum credit amount" amount means:

      1. (A) For tax years beginning after December 31, 2017, and before January 1, 2024, $5,000;
      2. (B) For the tax year ending December 31, 2024, $10,000; and
      3. (C) For tax years beginning after December 31, 2024, $10,000, increased annually pursuant to the cost-of-living adjustment (if the adjustment does not result in a multiple of $100, rounded down to the next multiple of $100).

   6. (6) "Qualified unincorporated business" means an unincorporated business that:

      1. (A) Is engaged in the business of making sales at retail and files a sales tax return pursuant to [Chapter 20 of this title] reflecting those sales;
      2. (B) Has federal gross receipts or sales less than the threshold amount for the taxable year; and
      3. (C) Is current on all District tax filings and payments.

   7. (7) "Qualified retail owned location" means a building or part of a building in the District that during the taxable year is:

      1. (A) The primary place of the retail business of the qualified unincorporated business;
      2. (B) Owned by the qualified unincorporated business; and
      3. (C) Classified, in whole or in part, as Class 2 Property, as defined in § 47-813, and has obtained a Certificate of Occupancy for commercial use.

   8. (8) "Qualified retail rental location" means a building or part of a building in the District that during the taxable year is:

      1. (A) A retail establishment as defined in § 47-2001(m);
      2. (B) The primary place of the retail business of the qualified corporation;
      3. (C) Leased by the qualified unincorporated business; and
      4. (D) Classified, in whole or in part, as Class 2 Property, as defined in § 47-813, and has obtained a Certificate of Occupancy for commercial use.

2. (b) For taxable years beginning after December 31, 2017, a qualified unincorporated business may claim a credit against the tax imposed by this chapter as follows:

   1. (1) A tax credit equal to 10% of the total rent paid by the qualified unincorporated business for a qualified rental retail location during the taxable year not to exceed the lesser of the total rent paid or the maximum credit amount; or
   2. (2) A tax credit equal to the total Class 2 real property taxes, pursuant to § 47-811, paid by the qualified unincorporated business for a qualified retail owned location during the taxable year not to exceed the lesser of the real property tax paid during the taxable year or the maximum credit amount.
3. (c) The credit claimed under this section in any one taxable year may exceed the qualified unincorporated business's tax liability, including any minimum tax due under § 47-1807.02(b), under this chapter for that taxable year and shall be refundable to the qualified unincorporated business claiming the credit.

4. (d) This section shall not apply if:

   1. (1) The qualified unincorporated business receives any tax credits towards payment of the real property tax for the qualified rental retail location or qualified owned retail location; or
   2. (2) The qualified rental retail location or qualified owned retail location is exempt from real property tax.

History

Oct. 30, 2018, D.C. Law 22-168, § 7252(c)

Feb. 22, 2019, D.C. Law 22-234, § 5(b)

Sept. 18, 2024, D.C. Law 25-217, § 7222(b)

Emergency Legislation

For temporary (90 days) creation of this section, see § 7252(c) of Fiscal Year 2019 Budget Support Emergency Act of 2018 (D.C. Act 22-434, July 30, 2018, 65 DCR 8200).

For temporary (90 days) creation of this section, see § 7252(c) of Fiscal Year 2019 Budget Support Congressional Review Emergency Act of 2018 (D.C. Act 22-458, Oct. 3, 2018, 65 DCR 11212).

For temporary (90 days) amendment of this section, see § 2(b)(2) of Fiscal Year 2019 Budget Support Clarification Emergency Amendment Act of 2018 (D.C. Act 22-488, Oct. 22, 2018, 65 DCR12046).

For temporary (90 days) amendment of this section, see § 5(b) of Fiscal Year 2019 Budget Support Clarification Emergency Amendment Act of 2018 (D.C. Act 22-488, Oct. 22, 2018, 65 DCR12046).

For temporary (90 days) amendment of this section, see § 5(b) of Fiscal Year 2019 Budget Support Clarification Congressional Review Emergency Amendment Act of 2018 (D.C. Act 22-552, Dec. 31, 2018, 66 DCR 251).

For temporary (90 days) amendment of this section, see § 7222(b) of Fiscal Year 2025 Budget Support Emergency Act of 2024 (D.C. Act 25-506, July 15, 2024, 71 DCR 8406).

Temporary Legislation

For temporary (225 days) amendment of this section, see § 4(b) of Fiscal Year 2019 Budget Support Clarification Temporary Amendment Act of 2018 (D.C. Law 22-218, Feb. 22, 2019, 65 DCR 12977).

Applicability

Section 6 of D.C. Law 22-234 provided that the amendments made to this section by D.C. Law 22-234 shall apply as of October 1, 2018.