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

WASHINGTON, D.C. — 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 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 refused to extend in 2011. Norton's previous tax incentives bill produced significant investment in the District of Columbia. 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 “With the Trump administration’s mass firings of federal employees, budget cuts and proposed relocation of federal agencies, as well as the continued prevalence of remote and hybrid work, this bill is especially important.”

Statement of Congresswoman Eleanor Holmes Norton

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

 as an Empowerment Zone

December 9, 2025

Today, I introduce a bill that would designate certain areas of the District of Columbia as an empowerment zone.  This bill effectively would reauthorize many of the unique federal tax incentives for business investment in D.C. that expired in 2011. With the Trump administration’s mass firings of federal employees, budget cuts and proposed relocation of federal agencies, as well as the continued prevalence of remote and hybrid work, this bill is 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 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 tax incentives were similar to, but more generous than, those available under the national empowerment zone program.  I got the D.C. tax incentives continuously reauthorized until 2011, when Congress refused to extend these tax incentives.  At the same time, Congress extended the national empowerment zone program, and the program was last extended through 2025.  Under this bill, low-income neighborhoods in D.C. would be treated as an empowerment zone as long as the national empowerment zone program remains in effect.  

Congress has long recognized that the benefits of tax incentives for investment in low-income communities outweigh the costs, as it has continuously extended the national empowerment zone program. 

I urge my colleagues to support this bill.

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