Small Business Concern Tax Credit Amendment Act of 1999
Bill 13-59

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A BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

To amend Title 47 of the District of Columbia Code to allow to a small business concern a tax credit for any amounts paid as a guaranty fee to the U.S. Small Business Administration.

BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the "Small Business Concern Tax Credit Amendment Act of 1999".

Sec. 2. Title 47 of the District of Columbia Code is amended by adding a new section 471803.4 to read as follows:

"§47-1803.4. Small business tax credit.

"(a) For the purposes of this section, a "small business concern" is any corporation, partnership, sole proprietorship, or other business entity qualifying as "small" pursuant to the standards contained in 13 C.F.R. §121 ( 1994) and which is incorporated in or conducting a majority of its business, as determined by gross revenues, within the District of Columbia.

"(b) Any small business concern operating within the District of Columbia shall be entitled to claim as a credit against the tax imposed by this title any amount paid to the U.S. Small Business Administration as a guaranty fee pursuant to the §7(a) Loan Guaranty Program contained in 13 C.F.R. §120.

"(c) This credit shall be available to a small business concern up to 60 months after payment of the guaranty fee, provided however that the credit shall not reduce the tax below the minimum tax where a minimum tax is provided under this title, and shall be claimed only by the small business concern which is the primary obligor in the financing transaction and which actually paid the guaranty fee.

"(d) This credit shall be available to a small business concern in the tax year in which the guarantee fee is paid and any §7(a) loan guarantee fees paid in that year by a small business concern which are greater than the amount that the small business concern is required to pay in taxes imposed by this title may be carried-over to the subsequent tax year.

Sec. 3. Effective date.

This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), approval by the Financial Responsibility and Management Assistance Authority as provided in section 203(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995 (109 Stat. 116; D.C. Code §47-392.3(a)), a 30-day period of Congressional review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Code §1-233(c)(1)), and publication in the District of Columbia Register.