{"data":{"id":"us-dc/d.c.-code-47-861.05","jurisdiction":"us-dc","citation":"D.C. Code § 47-861.05","heading":"Federal property tax abatements.","body":"\n      *NOTE: This section was created by emergency legislation that will expire on November 11, 2026.*\n      \n\n(a)\nThe real property tax imposed by § 47-811 on real property certified as eligible pursuant to subsection (e) of this section may be abated each year during the period of years determined by the Mayor pursuant to subsection (c) of this section, by the amount determined by the Mayor for that year; provided, that:\n(1)\nThe real property is:\n(A)\nA property that:\n(i)\nIs owned by the District;\n(ii)\nWas owned by the federal government immediately prior to its ownership by the District;\n(iii)\nWas disposed by the federal government to the District after January 1, 2026;\n(iv)\nIs ground leased to a private entity by the District pursuant to a ground lease and development agreement;\n(v)\nIs developed pursuant to the ground lease and development agreement with a project that has 200,000 square feet or more in gross floor area;\n(vi)\nWas not subject to tax under §§ 47-811 or 47-1005.01 immediately prior to being ground leased by the District government; and\n(vii)\nContinues to be subject to the ground lease and development agreement;\n(B)\nA property that:\n(i)\nWas owned by the District;\n(ii)\nWas owned by the federal government immediately prior to its ownership by the District;\n(iii)\nWas disposed by the federal government to the District after January 1, 2026;\n(iv)\nWas disposed of by the District pursuant to a sale and development agreement between the District and a private entity;\n(v)\nIs developed pursuant to the sale and development agreement with a project that has 200,000 square feet or more in gross floor area;\n(vi)\nWas not subject to tax under §§ 47-811 or 47-1005.01 while owned by the District government or federal government; and\n(vii)\nContinues to be subject to the sale and development agreement;\n(C)\nA property that:\n(i)\nWas owned by the federal government;\n(ii)\nWas disposed of by the federal government to a private entity after January 1, 2026, pursuant to a sale and development agreement between the federal government and the private entity;\n(iii)\nIs developed pursuant to the sale and development agreement with a project that has 200,000 square feet or more in gross floor area;\n(iv)\nWas not subject to tax under §§ 47-811 or 47-1005.01 while owned by the federal government; and\n(v)\nContinues to be subject to the sale and development agreement; or\n(D)\nA property that:\n(i)\nIs owned by the federal government;\n(ii)\nIs ground leased by the federal government to a private entity after January 1, 2026, pursuant to a ground lease and development agreement between the federal government and the private entity;\n(iii)\nIs developed pursuant to the ground lease and development agreement with a project that has 200,000 square feet or more in gross floor area;\n(iv)\nWas not subject to tax under §§ 47-811 or 47-1005.01 while owned by the federal government; and\n(v)\nContinues to be subject to the ground lease and development agreement;\n(2)\nThe owner or ground lessee of the real property enters into an agreement with the District that:\n(A)\nRequires the developer to, at a minimum:\n(i)\nContract with certified business enterprises for at least 35% of the contract dollar volume of the construction and development of the project, in accordance with § 2-218.46;\n(ii)\nEnter into a First Source Agreement for the construction and development of the project;\n(iii)\nFor the duration of the period set forth in subsection (c) of this section, maintain at least 10% of the housing units developed or redeveloped on the real property as affordable to households earning on average 60% or less of the median family income;\n(iv)\nFor the duration of the period set forth in subsection (c) of this section, ensure that at least 10% of the housing units offered for sale are affordable to households earning on average 80% or less of the median family income;\n(v)\nFile a covenant in the land records of the District, binding on the owner and all of its successors, covenanting to comply with the requirements of sub-subparagraphs (iii) and (iv) of this subparagraph, and any additional terms included in the covenant related to the design and administration of the housing units required by the Mayor by rule; and\n(B)\nSets forth such other terms and conditions as the Mayor considers appropriate;\n(3)\nThe project to be developed on the real property is one of special merit as determined by the Mayor; and\n(4)\nThe owner or ground lessee demonstrates to the satisfaction of the Mayor:\n(A)\nThat a tax abatement is necessary for the project to be financially feasible;\n(B)\nThe amount of the tax abatement necessary for the project to be financially feasible; and\n(C)\nAn ability to complete the project in a timely manner.\n\n(b)\nThe tax abatement provided for by this section shall last for up to 15 consecutive real property tax years beginning in the tax year commencing after the tax year in which the certificate of occupancy was issued for the development on the property.\n\n(c)\nThe number of years and annual amount of the tax abatement provided under this section shall be the number and amount, as determined in the sole discretion of the Mayor, subject to subsection (b) of this section, necessary for the project to be financially feasible and to be timely initiated and continued to completion by the owner or ground lessee of the real property.\n\n(d)\nIf, 5 years after the District and the owner or ground lessee enter into the agreement required by subsection (a)(2) of this section, the owner or ground lessee has not made substantial progress in developing the project, as determined by the Mayor, the Mayor may terminate the agreement and rescind the project's eligibility for a tax abatement under this section.\n\n(e)\n(1)\nThe Mayor shall certify to the Office of Tax and Revenue a real property's eligibility for the abatement provided by this section. The Mayor's certification shall include:\n(A)\nA description of the real property by street address, square, suffix, and lot;\n(B)\nThe date the certificate of occupancy was issued;\n(C)\nThe date the tax abatement begins and ends under subsections (b) and (c) of this section;\n(D)\nA statement that the conditions specified in subsection (a) of this section have been satisfied;\n(E)\nThe annual amount of the abatement as determined by the Mayor pursuant to subsection (c) of this section; and\n(F)\nAny other information that the Mayor considers necessary or appropriate.\n(2)\nIf at any time the Mayor determines that the real property has become ineligible for the abatement provided by this section, the Mayor shall notify the Office of Tax and Revenue and shall specify the date that the property became ineligible. The property shall cease to receive the abatement on the first day of the tax year following the date when the property became ineligible.\n\n(f)\nFor the purposes of this section, the term:\n(1)\n\"Certified business enterprise\" means a local business enterprise certified pursuant to Part D of Subchapter IX-A of Chapter 2 of Title 2.\n(2)\n\"Developer\" means the owner or ground lessee of real property eligible for a tax abatement under this section.\n(3)\n\"First Source Agreement\" means an agreement with the District governing certain obligations of the developer pursuant to § 2-219.03, and Mayor's Order 83-265, dated November 9, 1983, regarding job creation and employment.\n(4)\n\"Special merit\" means, with respect to a project under this section, providing significant benefits to the District or to the community in which the project is located by virtue of:\n(A)\nProviding a significant number of housing units or a substantial square footage of neighborhood-serving or regional retail;\n(B)\nHistorical designation of the site on or building in which the project is located;\n(C)\nComplexity of the development; or\n(D)\nSocial or other benefits having a high priority in the District or the community within which the project is to be located.\n\n(g)\nThe Mayor, pursuant to [subchapter I of Chapter 5 of Title 2], may issue rules to implement the provisions of this section.","path":["Title 47. Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title]","Chapter 8. Real Property Assessment and Tax.","Subchapter III. Miscellaneous."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/47-861.05","current_through":"2026-10-22 (D.C. Law 26-190)","vintage":"","retrieved_at":"2026-10-26T05:48:18Z","sha256":"be655c49135fe4bac14f561d63fc91f3f81d1a635da0091107abf82613cc2731","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-47-861.04","next":"us-dc/d.c.-code-47-861.06"},"notice":"GroundRules: Original legal text. Not legal advice."}