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Targeted Incentives: Enterprise Zones and Revenue Bonds
DC Enterprise Zone
On August 5, 1997, the President of the United States signed into law two new legislative initiatives designed to stimulate economic growth and job development in the nation's capital. The Balanced Budget Act of 1997 includes amendments to the District of Columbia Home Rule Charter that grant the District government broad authority to issue taxable and tax-exempt revenue bonds to finance the acquisition, construction, and renovation of a wide array of capital projects owned by private enterprises and non-profit institutions. Provisions of the Taxpayer Relief Act of 1997 (TRA) complement these expanded financing powers by establishing the District of Columbia "Enterprise Zone" (EZ).
Federal incentives designed to tap the investment and employment potential of the EZ include three types of wage credits, an additional expensing allowance, a zero federal capital gains tax rate on certain investments, and tax-exempt bond financing.
Enterprise Zone Resources:
- View the Enterprise Zone Map*
- For more information about Enterprise Zone incentives, visit, the Incentives section of the Washington DC, Economic Partnership's website.
- To determine whether a location is within the DC Enterprise Zone, contact the DC Revenue Bond Program at (202) 727-6365 or visit the Department of Housing and Urban Development's EZ/EC locator.
- For a copy of the Internal Revenue Service publication 954, Tax Incentives for Empowerment Zones and Other Distressed Communities, visit the publications section of the IRS website.
The District of Columbia Revenue Bond Program
The District of Columbia Revenue Bond Program provides below market interest rate loans to qualified private enterprises that are located in the Enterprise Zone as well as non-profit and manufacturing organizations citywide. Bonds can be issued to assist in financing a broad variety of capital projects, including commercial development, infrastructure improvements, and equipment and machinery used in business and other endeavors such as the retail trades, health care, education, housing, recreation, and solid waste recycling.
Program funds are generated through the issuance and sale of tax-exempt and taxable municipal revenue bonds, notes, or other obligations. Proceeds from the sale of these securities are loaned to borrowers and may be used to finance, refinance and reimburse costs of acquiring, constructing, restoring, rehabilitating, expanding, improving, equipping and furnishing real property, and related and subordinate facilities. The Revenue Bond Program has helped attract to the District approximately $4 billion of private investment capital on behalf of dozens of small and large institutions located throughout the District.
Revenue Bond Program Resources:
- Revenue Bond Financing Application
- For further information on federal incentives or the Application for Revenue Bond Financing call or write:
District of Columbia Revenue Bond Program
Office of the Deputy Mayor for Planning and Economic Development
John A. Wilson Building
1350 Pennsylvania Avenue, NW, Suite 317
Washington, DC 20004
(202) 727-6365
Fax: (202) 727-6703
- Further information is available on the Washington, DC Economic Partnership website.
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