Washington, DC is a place best known for its power politics on Capitol Hill and the famous landmarks that draw tourists from every inch of the globe. People come to the capital in their droves, eager to feel the sense of history that flows through a city that was once the stage for Martin Luther King’s most famous march and the massive anti-Vietnam protests that helped define the 1960s, as well as the wider political and social landscape of the country.
Less known, however, is that the District of Columbia is much more than a region lined with lobbyists, lawyers and legislators. It is also home to some of the best restaurants, able to satisfy the palate of even the fussiest foodie, not to mention a hub for innovative start-ups like Capital Bikeshare, which paved the way for spin-offs of its rent-a-bike scheme over the pond. All this and more help make DC one of the best places in the US for a budding entrepreneur looking to make their business into the next big thing.
Burgeoning economy
DC possesses one of the most highly diversified economies in the US, with more and more businesses opting to set up shop in the capital. This increase in trade has helped to drive GDP in the Washington metropolitan area year on year – generating over $460bn in 2014 – making it the fifth-largest urban economy in the country.
For tech-savvy entrepreneurs there has never been a better time to build the next big thing
in DC
Though it is impossible to deny that the city has benefited from its position in the nation’s political heartland, prospering from large amounts of federal spending, to label its economy a one trick pony would be a terrible disservice to the numerous industries and vast human capital that play their part in the city’s economic success.
The greater Washington area is where much of this talent and entrepreneurial spirit resides, away from the National Mall and the crowds of tourists. Here media, real estate, finance and an ever-increasing clutch of hopeful tech start-ups have laid roots.
The reason? Because those that choose to make DC their home benefit from all the trappings that Manhattan has to offer, at a fraction of the cost of the Big Apple. Not only that, but it offers families a great standard of living, and with the proliferation of charter schools in the district, parents and their children have never had a better opportunity to access quality education.
Tax incentives
For tech-savvy entrepreneurs there has never been a better time to build the next big thing in DC as, late last year, Mayor Vincent Gray officially lowered the capital gains tax rate for Washington residents who opt to invest in DC-based technology companies. The new rate will take effect in 2019, dropping from 8.95 percent to just three percent on all technology investments, provided both the company and the investor are based in the DC area.
In a statement released by the mayor, he said: “I am reintroducing this provision because I believe it is essential that we help our start-ups and do everything we can to encourage the creation, expansion and retention of these home-grown businesses and good jobs for district residents.”
Technology is not the only sector that benefits from favourable tax rates. Washington, DC provides a whole host of financial incentives in order to attract and retain business in the region, with reduced taxes on income and property, and a bond programme that offers low interest loans to non-profits, private companies and manufacturing. All this makes the capital more than a centre for politics – it is a centre for commerce too.