D.C. Mun. Regs. tit. 10, r. 10-B3903
A newly constructed rental housing accommodation certified eligible for tax abatement under the program shall be entitled to the abatement of eighty percent (80%) of its total District of Columbia property tax liability during the first property tax year following the date on which the project becomes available for rent.
The tax liability of certified eligible newly constructed rental housing accommodations shall be increased by increments of sixteen percent (16%) of the full tax liability in each succeeding tax year after the first year of eligibility for tax abatement, until the time that full tax liability is reached, as follows:
Tax Year After Availability | Percentage of Assessed Tax Amount Owed |
1st | 20% |
2nd | 36% |
3rd | 52% |
4th | 68% |
5th | 84% |
6th or later | 100% |
A certified eligible vacant rental housing accommodation which has been rehabilitated shall be entitled to tax abatement under §§ 3903.1 and 3903.2 for that amount of its District of Columbia property tax which was increased due to the rehabilitation.
Determination of the amount by which District property tax was increased due to rehabilitation shall be made by the Department of Finance and Revenue, based on the building permits for rehabilitation issued to the project, consistent with existing practice by the Department of Finance and Revenue.
A rental housing accommodation certified eligible for tax abatement under this chapter shall be considered available for rental as of the date on which a valid Certificate of Occupancy for housing use has been issued by the Department of Consumer and Regulatory Affairs covering all of the rental units in the project.
In order for a project certified eligible for tax abatement to receive the first year of property tax abatement, the following shall be delivered to and stamped "received" by, the D.C. Department of Finance and Revenue not later than the close of business on the last business day prior to the start of a new tax year on July 1st:
For purposes of §§ 3903.5 and 3903.6, if a project which has been certified eligible for tax abatement is located on more than one tax assessment lot, the abatement may be granted separately for each assessment lot when all of the units on an assessment lot have received a valid Certificate of Occupancy.
If the Certificate of Occupancy or other required documents are received after the time specified in § 3903.6, the project shall not receive property tax abatement until the tax year which begins on July 1st of the following calendar year.
The percentage of tax abatement specified in §§ 3903.1 and 3903.2 shall be applied to the most current full tax assessment for certified eligible properties in each of the five (5) tax years the abatement is in effect.
The percentage of tax abatement specified in § 3903.3 for a vacant rental housing accommodation which has been rehabilitated shall be applied, in the second, third, fourth and fifth tax years, only to the same proportion of the current full tax assessment as the proportion of the tax increase due to rehabilitation was for the first year of tax abatement, as determined under §§ 3903.3 and 3903.4. For example, if the amount by which District property tax was increased due to rehabilitation was forty percent (40%) of the total tax assessment on the property during the first tax abatement year, then the percentages of tax abatement for the next four (4) years of its eligibility shall be applied to only forty percent (40%) of its total tax liability in each of those years.
D.C. Mun. Regs. tit. 10, r. 10-B3903