5 TAX-EXEMPT BOND FINANCING
THE INDUSTRIAL REVENUE BOND PROGRAM (IRB) provides
access to tax-exempt financing to help businesses and nonprofit
FINANCIAL INCENTIVES DC DOING BUSINESS GUIDE 2018/2019 63
organizations renovate and build new construction,
make tenant improvements, and purchase capital by
securing interest rates up to 4% lower than a traditional
commercial loan.
IRB can be used to finance, refinance, and reimburse the
costs of acquiring, constructing, restoring, rehabilitating,
expanding, improving, equipping, or furnishing real
property and related subordinate facilities. More than $11.5
billion has been issued through Washington, DC’s IRB
program since 1994.
ELIGIBILITY
Nonprofit organizations and manufacturing businesses
located within the District are generally eligible for the IRB
program. Other businesses may be eligible as well depending
on the type of good or service produced and the location of
their site within Washington, DC.
These bonds are used to finance a wide variety of projects
including:
• Elementary, secondary, college, and university facilities
• Health care and health facilities
• Housing and hotels
• Industrial and commercial development
• Manufacturing
• Pollution control facilities
• Recreational facilities
• Sports, convention and entertainment facilities
• Student loan programs
• Transit and utility facilities
To apply or for additional information, contact the
DC Revenue Bond Program at (202) 727-6365 or
visit dmped.dc.gov/page/dc-revenue-bond-program.
OPPORTUNITY TAX CREDITS
The Work Opportunity Tax Credit (WOTC) is a Federal tax
credit available to employers for hiring individuals from
certain target groups who have consistently faced significant
barriers to employment. WOTC undergoes changes,
extension(s), and modification to target groups as Congress
sees fit. Any target group may be discontinued, modified, or
placed on hold for reauthorization. Employers and employer
representatives may continue to submit applications for
those target groups until a legislative decision is made and
a Training Employment and Guidance Letter (TEGL) has
been issued by the U.S. Department of Labor—Employment
and Training Administration with instructions for State
Workforce Agencies (SWAs). Recently, the Path Act of 2015
extended WOTC retroactively for new hires from December
31, 2014 to December 31, 2019.
ELIGIBILITY
Employers can hire eligible employees from the following
target groups for WOTC:
• Unemployed veterans (including disabled veterans)
• Temporary Assistance for Needy Families (TANF)
recipients
• Food stamp (SNAP) recipients
• Designated community residents (living in Empowerment
Zones or Rural Renewal Counties)
• Vocational rehabilitation referred individuals
• Ex-felons
• Supplemental security income recipients
• Summer youth employees (living in Empowerment Zones)
• Qualified long-term unemployment recipients*
WOTC EMPLOYER BENEFITS
• Reduces cost of doing business
• Reduces federal income tax liability between $1,200 and
$9,600 per employee
• No limit of new hires to claim the tax credit
CLAIMING WOTC
The requirements to certify that a new employee qualifies the
employer for this tax credit include:
• Employees must work a minimum of 120 hours the first
year of employment.
• Complete IRS Form 8850 by the day the job offer
is made.
• Complete Employment and Training Administration
(ETA) Form 9061 or 9062 if employee has
been conditionally certified by state workforce
agency, vocational rehabilitation agency, or other
participating agency.
• Forms must be submitted within 28 calendar days of
employee’s start date.
• Insert the WOTC prescreening form into your
on-boarding documents to ensure that you capture
credits from eligible new hires.
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