The District provides a variety of tax benefits to QHTCs, including sales and use tax1 and personal property tax exemptions,2 as well as a reduced corporation franchise tax rate.3 In order to qualify as a QHTC, a business must:

  • Be an individual or entity organized for profit;
  • Lease or own an office in the District;
  • Have two or more qualified employees within the District;
  • Derive at least 51% of its gross revenues earned in the District from certain high technology-type activities; and
  • Be registered with the District Government as a business.

Previously, to obtain QHTC benefits each year, the Office of Tax and Revenue (OTR) required QHTCs to attach to their tax returns or claims for refund a QHTC-CERT form. The QHTC-CERT form is a certification that the taxpayer meets all of the conditions required of a QHTC.

Read the full Legal Alert here.