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

From the office of Congresswoman Eleanor Holmes Norton:

“Congresswoman Eleanor Holmes Norton (D-DC) today reintroduced 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 would effectively restore many of the federal tax incentives for investment in low-income D.C. neighborhoods that a Norton bill created in 1997, but that Congress let expire in 2011.

Norton’s previous tax incentives bill produced significant investment in the District. Norton said that since Congress continues to extend the national empowerment zone program, D.C. neighborhoods that need the incentives should be able to participate in it.

In her introductory statement, Norton said: “D.C.’s downtown, which has been the economic engine of the city, has been particularly hard hit by the increase in remote and hybrid work since the COVID-19 pandemic, making this bill especially important. Congress has recognized that the benefits of tax incentives for investment in economically distressed communities outweigh the costs, as it has continuously extended the national empowerment zone program. The tax incentives for D.C. were effective and their costs were de minimis.”

Norton’s introductory statement follows.

Statement of Congresswoman Eleanor Holmes Norton

On the Introduction of a Bill to Designate the District of Columbia
as an Empowerment Zone
November 28, 2023

Mr. Speaker.

Today, I introduce a bill that would designate certain areas of the District of Columbia as empowerment zones. This bill would effectively reauthorize many of the unique federal tax incentives for business investment in D.C. that expired in 2011. D.C.’s downtown, which has been the economic engine of the city, has been particularly hard hit by the increase in remote and hybrid work since the COVID-19 pandemic, making this bill especially important.

In 1993, Congress created the national empowerment zone program to encourage investment in low-income communities and delegated to federal agencies the authority to designate communities as empowerment zones. D.C. was not among those so designated. However, in 1997, working primarily with Republicans in Congress, I created federal tax incentives for investment in D.C. 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 the D.C. incentives. At the same time, Congress extended the national empowerment zone program, and the program was last extended through 2025. Under my bill, low-income neighborhoods in D.C. would be treated as empowerment zones as long as the national empowerment zone program remains in effect.

Congress has recognized that the benefits of tax incentives for investment in economically distressed communities outweigh the costs, as it has continuously extended the national empowerment zone program. The tax incentives for D.C. were the only tax incentives for a big city that were not extended, even though they were initially created by Republicans, with the help of several Democrats.

The expiration of the tax incentives for D.C. was tragically timed, as the low-income parts of D.C., which needed the incentives most, were ready for revitalization. As we work to revitalize downtown D.C. and Wards 5, 7 and 8, the need for these incentives for D.C. is of paramount importance. The tax incentives for D.C. were effective and their costs were de minimis.

I strongly urge my colleagues to support this bill.”