(a) For the purposes of this section, the term “relocation costs” means amounts paid to, or on behalf of, a qualified employee:

(1) For reimbursement of actual moving expenses; or

(2) To assist the employee in financing the purchase of a residence, or the required security deposit or lease payments for the first 12 months of a lease for a residence under a lease of at least one year, which purchase or lease is entered into after December 31, 2000.

(b)(1) Except as provided in subsection (c) of this section, for taxable years beginning after December 31, 2000, a Qualified High Technology Company shall be allowed a credit not to exceed:

(A) $5,000 against the tax imposed by § 47-1817.06 for the relocation costs for each qualified employee relocated to the District from a location outside the District; or

(B) $7,500 against the tax imposed by § 47-1817.06 for the relocation costs for each qualified employee relocated to the District from a location outside the District, which employee also relocates his or her principal residence into the District.

(2) The credit may be claimed for costs incurred after December 31, 2000, in connection with qualified employees relocated to the District after that date.

(c)(1) The annual credit under subsection (b) of this section shall not exceed, in the aggregate:

(A) $250,000 for the credit allowed under subsection (b)(1)(A) of this section; and

(B) $1,000,000 for the credit allowed under subsection (b)(1)(B) of this section.

(2) The credit under subsection (b) of this section shall not be allowed:

(A) Until the Qualified High Technology Company relocates at least 2 qualified employees into the District;

(B) Until the Qualified High Technology Company has employed the qualified employee for at least 6 months in the District;

(C) As a credit for employees who work less than 35 hours per week;

(D) If the qualified employee is a member of the board of directors of the Qualified High Technology Company, directly or indirectly owns a majority of its stock, or is related to a member of the board of directors or a majority stockholder as a spouse, domestic partner, or a relative listed in the definition of “dependent” in section 152 of the Internal Revenue Code of 1986, without regard to source of income; or

(E) If the Qualified High Technology Company has claimed a deduction for the relocation costs.

(d) If the amount of the credit allowable under this section exceeds the tax otherwise due from a Qualified High Technology Company, the unused amount of the credit may be carried forward for 10 years.

(Apr. 3, 2001, D.C. Law 13-256, § 201(b), 48 DCR 730; Sept. 12, 2008, D.C. Law 17-231, § 41(n), 55 DCR 6758.)

D.C. Law 17-231, in subsec. (c)(2)(D), substituted “spouse, domestic partner,” for “spouse”.