District of Columbia Tax Incentives Improvement Act of 2006

H.R. 5186, the District of Columbia Tax Incentives Improvement Act of 2006, aimed to stimulate economic growth in Washington, D.C., by extending and expanding several federal tax benefits. The bill proposed designating specific "target areas" within the city as empowerment zones, which would provide tax incentives for businesses to invest and create jobs in those neighborhoods. For residents, the legislation sought to double the existing tax credit for first-time homebuyers in the District to $10,000 and extend the program’s availability through the end of 2009. Additionally, the bill included provisions to encourage long-term investment by allowing individuals and businesses to exclude capital gains from the sale of certain local assets held for more than five years.