District Of Columbia § 47-4509 - Local tax exemption.
Full text of District Of Columbia D.C. Code § 47-4509 — Local tax exemption., with citation guidance and answers to common questions.
§ 47-4509. Local tax exemption.
47-4509An account owner who files an income tax return in the District of Columbia may claim a deduction in an annual amount not to exceed $4,000 for contributions made to all accounts under the Program. With respect to married individuals (or domestic partners registered under ) filing a joint return, each married individual (or domestic partner registered under ) may claim a deduction in an annual amount not to exceed $4,000 for contributions made to all accounts under the Program for which the married individual (or domestic partner registered under ) is the account owner.
If an amount greater than $4,000 is contributed to one or more accounts in a tax year, the excess may be carried forward as a deduction, subject to the annual limit, for 5 years.
Any deduction taken under this section shall be subject to recapture with respect to a withdrawal or rollover taken within 2 years of the establishment of the account for any reason other than provided in subsection (d) of this section. In addition, notwithstanding the statute of limitations on assessments in [repealed], any deduction taken under this section shall be subject to recapture in the taxable year in which the withdrawal or rollover is made after 2 years of the establishment of the account for any reason other than provided in subsection (d) of this section or to transfer to another qualified tuition program.
Deductions taken under this section shall not be subject to recapture as provided in subsection (c) of this section if:
The funds are used to pay for qualified higher education expenses;
The beneficiary dies, develops a disability, or receives a scholarship;
The beneficiary receives a scholarship; provided, that the exemption shall be limited to the amount of the scholarship; or
The funds are transferred to another account maintained under the Program.
Subject to subsection (f) of this section, earnings on accounts shall be exempt from District of Columbia income taxation.
Qualified withdrawals shall be exempt from District of Columbia income taxation. The portion of any other withdrawal that is attributable to account earnings shall be subject to District of Columbia income taxation in the year in which the withdrawal is made.
Annotations
Source: official District Of Columbia text · Last verified 2026-08-27
Frequently Asked Questions About District Of Columbia § 47-4509
What does D.C. Code § 47-4509 cover?
Section 47-4509 ("Local tax exemption.") is part of the D.C. Code, the codified statutory law of District Of Columbia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite District Of Columbia § 47-4509?
A common citation format is "D.C. Code § 47-4509" (District Of Columbia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of District Of Columbia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the District Of Columbia official source linked on this page or consult a licensed District Of Columbia attorney.
How does District Of Columbia § 47-4509 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in District Of Columbia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in District Of Columbia.