Norton Introduces Bill to Designate D.C. Neighborhoods in Need of Investment as Empowerment Zones

WASHINGTON, D.C. – RealEstateRama – Congresswoman Eleanor Holmes Norton (D-DC) has introduced a bill that would add the District of Columbia to the national empowerment zone program to provide federal tax incentives for businesses to locate and invest in low-income areas in the District.  This bill effectively would restore many of the federal tax incentives for investment in low-income D.C. neighborhoods that Norton created through legislation in 1997, but Congress let expire in 2011.  Norton’s previous tax incentives bill produced significant investment in the District.  Today’s bill is particularly focused on Wards 5, 7 and 8, where the need is greatest.  Norton says that since Congress continues to extend the national empowerment zone program, D.C neighborhoods that need the incentives should be able to participate in this program.

In her introductory statement, Norton said: “Unfortunately, the D.C. tax incentives were allowed to expire before the poorest D.C. neighborhoods were ready to make use of them, especially in Wards 5, 7 and 8.  Withdrawing the D.C. tax incentives, particularly after they had proven to be effective in other areas of the city, has left the nation’s capital with essentially half of a revival, and was tragically timed just as the lower-income parts of the District, which need the incentives most, are ready for redevelopment.  The effectiveness of these incentives for the District has been demonstrated and their costs have been de minimis compared to the measurable benefits they have generated in the District.”

Norton’s full statement is below.

Statement of Congresswoman Eleanor Holmes Norton

On the Introduction of a Bill to Designate the District of Columbia

as an Empowerment Zone

March 2, 2020

Ms. Norton. Madam Speaker.

I rise to introduce a bill that would statutorily add the District of Columbia to the national empowerment zone program, which provides federal tax incentives for businesses to locate and invest in low-income areas.  In 1993, Congress created the national empowerment zone program and left it to federal agencies to designate a certain number of low-income areas as empowerment zones.  The District was not one of the areas selected.  However, in 1997, working primarily with Republicans in Congress, I created federal tax incentives for investment in the District by businesses and individuals.  The business incentives were similar to, but more generous than, those available under the national empowerment zone program.  I got the D.C. incentives reauthorized regularly until 2011, when Congress refused to extend only the D.C. program.  At the same time, the national empowerment zone program continued to be reauthorized and was reauthorized last year through 2020. Under my bill, certain low-income neighborhoods, particularly in Wards 5, 7 and 8, would be treated as empowerment zones as long as the national empowerment zone program remains in effect.

The wisdom of the bipartisan, modest, targeted business tax incentives for D.C. has been amply and visibly demonstrated in the economic resurgence of parts of the nation’s capital where they were applied.  Among the most visible examples are the formerly rundown area around the Verizon Center (now Capital One Arena), which is now surrounded by offices, restaurants and vibrant nightlife, and the Penn Quarter neighborhood, which had limited residential, commercial and retail spaces, and is now a popular mixed-use neighborhood.

Unfortunately, the D.C. tax incentives were allowed to expire before the poorest D.C. neighborhoods were ready to make use of them, especially in Wards 5, 7 and 8.  Withdrawing the D.C. tax incentives, particularly after they had proven to be effective in other areas of the city, has left the nation’s capital with essentially half of a revival, and was tragically timed just as the lower-income parts of the District, which need the incentives most, are ready for redevelopment.  The effectiveness of these incentives for the District has been demonstrated and their costs have been de minimis compared to the measurable benefits they have generated in the District.

I strongly urge my colleagues to support this bill.

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