In the Headlines
February 10, 2012

New D.C. Regulations Could Ease Incentive Uncertainty

Washington Business Journal

Most companies that make the leap from one jurisdiction to another want to know for certain, before they commit to the move, that they are eligible for the tax incentives promised to them. But in D.C. there are no guarantees. A business could relocate only to find later it did not qualify for whatever incentive led it to move in the first place. Proposed regulations to be issued by the Office of Tax and Revenue Feb. 10 will create a petitioning process for a “declaratory order,” a binding opinion from the chief financial officer attesting to a company’s eligibility for tax abatements, incentives and other financial inducements.

According to Co-Chair of the D.C. Practice Dennis Horn, a declaratory order is better than the current system, “where effectively the executive says ‘Come in,’ but it doesn’t have the sanction of the other two branches,” the D.C. Council and the CFO.

READ: New D.C. Regulations Could Ease Incentive Uncertainty

Related News and Headlines