Job Growth Incentive Amendment Act of 2025

COUNCIL OF THE DISTRICT OF COLUMBIA
OFFICE OF COUNCILMEMBER BROOKE PINTO
THE JOHN A. WILSON BUILDING
1350 PENNSYLVANIA AVENUE, N.W., SUITE 106
WASHINGTON, D.C. 20004

November 17, 2025

Nyasha Howard, Secretary
Council of the District of Columbia
1350 Pennsylvania Avenue, N.W.
Washington, DC 20004

Dear Secretary Howard,

Today, I am introducing the “Job Growth Incentive Amendment Act of 2025.” Please find enclosed a signed
copy of the legislation.

Following thousands of federal government and contractor layoffs, there is a critical need to diversify the
District’s economy and encourage businesses to expand and hire DC employees. The Job Growth Incentive
Amendment Act of 2025 allows businesses to apply for a tax credit if, between 2027 and 2032, they create
at least 25 new jobs for District residents.1 The bill requires that the positions be paid at least the average
yearly wage in DC. Businesses must retain the new positions for at least one year , but if the positions are
sustained for a longer period, the credit is available for up to ten years . The credit is only available for
projects that would not otherwise occur but for the job growth tax credit.

By providing this incentive, the District will support both current business owners and businesses that
relocate to DC to create new jobs and employ city residents.

Should you have any questions about this legislation, please contact my Policy Advisor, Ella Hanson, at
ehanson@dccouncil.gov.

Thank you,

Brooke Pinto
Councilmember, Ward 2
Chairwoman, Committee on the Judiciary and Public Safety
Council of the District of Columbia

1 This bill builds upon the previously approved Job Growth Incentive Act of 2010, which allowed businesses to apply
for a tax credit if they hired at least 10 new employees who were District residents. Businesses were only eligible if
they applied for the credit between 2010 and 2015. Job Growth Incenti ve Act of 2010, effective July 27, 2010 (D.C.
Law 18-202), available here.

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__________________________
Councilmember Brooke Pinto

A BILL

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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

_________________

To amend Title 47 of the District of Columbia Official Code to extend the range of dates during 1
which a taxpayer may be eligible for the job growth tax credit to include tax years 2
beginning on or after January 1, 2027, but prior to January 1, 2032, and to allow job 3
growth tax credits equal to up to 100% of the taxpayer's total estimated FICA taxes each 4
year for all new employees of the qualifying project who are residents of the District of 5
Columbia; and to amend the Job Growth Incentive Act of 2010 to extend the applicability 6
date. 7
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BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 9
act may be cited as the “Job Growth Incentive Amendment Act of 2025”. 10
Sec. 2. Title 47 of the District of Columbia Code is amended as follows: 11
(a) Section 47-1807.51(2) is amended to read as follows: 12
“(2) "Credit period” means a period of up to 60 consecutive months for which a taxpayer 13
may claim the job growth tax credit that is calculated annually by the Mayor. The credit period 14
shall not extend past December 31, 2020, for credits claimed between January 1, 2010, and 15
January 1, 2015, and shall not extend past December 31, 2037, for credits claimed between 16
January 1, 2027, and January 1, 2032.”. 17
(b) Section 47-1807.52 is amended by striking the phrase “For tax years beginning on or 18

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after January 1, 2010, but prior to January 1, 2015” and inserting the phrase “For tax years 19
beginning on or after January 1, 2010, but prior to January 1, 2015, and for tax years beginning 20
on or after January 1, 2027, but prior to January 1, 2032” in its place. 21
(c) Section 47-1807.53(1) is amended to read as follows: 22
“(1)(A) For job growth tax credits claimed by taxpayers between January 1, 2010, and 23
January 1, 2015, bring a net job growth of at least 10 new jobs to the District of Columbia with 24
an average yearly wage of at least 120% of the average yearly wage of residents of the District of 25
Columbia; 26
“(B) For job growth tax credits claimed by taxpayers between January 1, 2027, 27
and January 1, 2032, bring a net job growth of at least 25 new jobs to the District of Columbia 28
with an average yearly wage of at least 100% of the average yearly wage of residents of the 29
District of Columbia;”. 30
(c) Section 47-1807.54(b) is amended to read as follows: 31
“(b)(1) For job growth tax credits claimed by taxpayers between January 1, 2010, and 32
January 1, 2015, the job growth tax credit allowed shall be calculated by the Mayor as follows: 33
“(A) For the maximum amount of the job growth tax credit available to 34
the taxpayer for the credit period, the Mayor shall multiply the estimated net job growth for each 35
of the years in the credit period by 50% of the taxpayer's total estimated FICA taxes each year 36
for all new employees of the project who are residents of the District of Columbia. 37
“(B) For the annual amount of the job growth tax credit allowed, the 38
Mayor shall multiply the actual net job growth for that year by 50% of the taxpayer's FICA taxes 39
for the new employees of the project who are residents of the District of Columbia; provided, 40
that a job growth tax credit shall not be allowed, and a credit certificate shall be not be issued, in 41

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an amount that exceeds the maximum amount of the approved job growth tax credits as 42
calculated pursuant to sub-paragraph (A) of this subsection. 43
“(C) If the amount of the credit allowed under paragraph (2) of this 44
subsection exceeds the amount of franchise taxes otherwise due on the taxpayer's income in the 45
tax year for which the job growth tax credit is being claimed, the unused amount of the job 46
growth tax credit may be carried forward and used as a credit against subsequent years' franchise 47
tax liability for a period not to exceed 10 years and shall be applied first to the earliest tax years 48
possible. Any credit remaining after this period shall not be refunded or credited to the taxpayer. 49
“(D) A taxpayer who uses a job growth tax credit that is subsequently 50
disallowed shall be liable for the resulting tax deficiency, interest, and penalties as otherwise 51
provided by law. 52
“(2) For job growth tax credits claimed by taxpayers between January 1, 2027, 53
and January 1, 2032, the job growth tax credit allowed shall be calculated by the Mayor as 54
follows: 55
“(A) For the maximum amount of the job growth tax credit available to 56
the taxpayer for the credit period, the Mayor shall multiply the estimated net job growth for each 57
of the years in the credit period by 100% of the taxpayer's total estimated FICA taxes each year 58
for all new employees of the project who are residents of the District of Columbia. 59
“(B) For the annual amount of the job growth tax credit allowed, the 60
Mayor shall multiply the actual net job growth for that year by 100% of the taxpayer's FICA 61
taxes for the new employees of the project who are residents of the District of Columbia; 62
provided, that a job growth tax credit shall not be allowed, and a credit certificate shall be not be 63
issued, in an amount that exceeds the maximum amount of the approved job growth tax credits 64

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as calculated pursuant to sub-paragraph (A) of this subsection. 65
“(C) If the amount of the credit allowed under paragraph (2) of this 66
subsection exceeds the amount of franchise taxes otherwise due on the taxpayer's income in the 67
tax year for which the job growth tax credit is being claimed, the unused amount of the job 68
growth tax credit may be carried forward and used as a credit against subsequent years' franchise 69
tax liability for a period not to exceed 10 years and shall be applied first to the earliest tax years 70
possible. Any credit remaining after this period shall not be refunded or credited to the taxpayer. 71
“(D) A taxpayer who uses a job growth tax credit that is subsequently 72
disallowed shall be liable for the resulting tax deficiency, interest, and penalties as otherwise 73
provided by law.”. 74
Sec. 3. Section 3 of the Job Growth Incentive Act of 2025, effective July 27, 2010 (D.C. 75
Law 18-202; D.C. Official Code § 47-1807.09), is amended by s triking the phrase “January 1, 76
2030” and inserting the phrase “January 1, 2043” it its place. 77
Sec. 4. Fiscal impact statement. 78
The Council adopts the fiscal impact statement in the committee report as the fiscal 79
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 80
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 81
Sec. 5. Effective date. 82
This act shall take effect following approval by the Mayor (or in the event of veto by the 83
Mayor, action by the Council to override the veto) and a 30-day period of congressional review 84
as provided in section 602(c)(l) of the District of Columbia Home Rule Act, approved December 85
24, 1973 (87 Stat. 813; D.C. Official Code§ l-206.02(c)(l)). 86