Tuesday, November 7, 2000
Mayor Williams Announces New Economy Transformation Act of 2000
(Washington, DC) - On Wednesday, November 8th, the DC City Council will hear the first reading of the "New Economy Transformation Act of 2000," legislation introduced by Councilmember David Catania and amended by Councilmembers Catania and Jack Evans and Mayor Anthony A. Williams. The legislation was crafted with the input of The New Economy Advisors and The Digital Capital Alliance, representing the private sector perspective. The proposed legislation represents a package of incentives designed to attract and retain technology business in the District. These incentives are grouped into three areas: Workforce Development, Affordable Facilities, and Targeted Financial Incentives.
"My vision for our city is to become the technology capital of the world," commented Mayor Williams. "This legislation sends a clear message that the District is open for business. We want to attract and retain leaders in the fields of e-government, e-commerce, e-business, and technology."
The Workforce Development section of the bill includes relocation, wage, and training credits. The credits are for qualified High Tech Companies operating in the District and are triggered by the relocation or creation of new jobs in the city. The Mayor has also proposed to expand the incentives for technology workers that move their primary personal residence into the District. Among those targeted for the incentives are Temporary Aid to Needy Families (TANF) recipients and ex-offenders.
The Affordable Facilities section provides assistance to companies facing challenges in securing office space in the District. The Mayor's office will create and administer a Security Deposit Assistance program and a Master Lease program, which allows the District to lease office space and turn it over to tech companies at below market rents. In addition, District owned or controlled properties will be made available to technology companies at competitive prices. In exchange for this assistance, high technology companies will provide community assistance through teacher training and student internships. There are also real property tax incentives for the rehabilitation and new construction of facilities that are 50% occupied by technology companies.
Finally, there are a number of additional tax incentives under the Targeted Financial Incentives section of the bill. These taxes include: personal property tax, sales tax, corporate business franchise tax, asset depreciation, unincorporated business franchise tax, capital gains, and rollovers (for investments in District-based companies). Within this section, the franchise tax for Qualified High Technology Companies is reduced to 6%, or in targeted parts of the city, 0%.
The Mayor has amended the New Economy Transformation Act to provide enhanced benefits for companies whose employees relocate their primary personal residence to the District, that increase technology assistance to community, and that create exemptions for investments in District-based companies.
The Finance and Revenue Committee of the City Council approved the legislation on October 19th. The first reading of the legislation is scheduled for the afternoon of November 8th. The second reading and vote will be December 5th.
