Form D-20CR, QHTC Corporate Business Tax Credits, is the 2024 schedule on which a corporation certified as a Qualified High Technology Company (QHTC) claims its credits against the District of Columbia corporate franchise tax. It is issued by the DC Office of Tax and Revenue (OTR) and is filed with Form D-20. On this page you can fill out the form online on FillingPDF and download or print the completed PDF; the original form and its instructions are published by OTR.
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What is D-20CR?
Form D-20CR, QHTC Corporate Business Tax Credits, is the schedule that a certified Qualified High Technology Company (QHTC) files with its DC corporate franchise tax return, Form D-20, to claim the QHTC credits for the tax year printed at the top of the form.
The DC Office of Tax and Revenue (OTR) issues it. The form has four parts:
- Part A: credit for 5% of wages paid to qualified employees during the first 24 months of employment.
- Part B: credit for 50% of wages paid to qualified disadvantaged employees during the first 24 months of employment.
- Part C: credit for the costs of retraining qualified disadvantaged employees during the first 18 months of their employment (see DC Code §47-1817.04).
- Part D: summary of the non-refundable credits used on this return and carried forward.
The amounts for Parts A, B and C are not figured on the form itself. They come from FP-333, FP-334 and the Retraining Costs Tax Credit Worksheet in the FR-399 QHTC Instruction Book. The total non-refundable credits used this return, Part D, Line 4a, go on Schedule UB, Line 2.
Form D-20CR is a credit schedule. It does not replace the Form D-20 return or the QHTC Self-Certification on MyTax.DC.gov, which the instructions require alongside it.
Who needs to file D-20CR?
A corporation certified as a Qualified High Technology Company (QHTC) may file Form D-20CR to claim the credits listed on it. A Limited Liability Company (LLC) that has elected to be treated as a corporation for Federal tax purposes qualifies on the same terms, if it is certified as a QHTC.
Conditions attached to the credits:
- The company must file a DC corporate franchise tax return, Form D-20, to claim the credits entered on Form D-20CR.
- The QHTC Self-Certification on MyTax.DC.gov must also be completed, even if the company was certified as a QHTC before.
- Part A applies to a qualified employee hired after December 31, 2017 and employed in DC by the QHTC in the "permitted activities."
- Parts B and C concern qualified disadvantaged employees.
The instructions name no other filers. A business that is not a corporation (or an LLC taxed as one) or that is not certified as a QHTC is outside the group the instructions describe.
When to file D-20CR
File Form D-20CR at the same time as the Form D-20 corporate franchise tax return that claims the credits. The form says "File With Form D-20" and prints no separate due date, so it follows the timing of that return. The tax return year, with its beginning and ending dates, is entered at the top of the form.
The instructions add two timing rules. The Certification of Gross Revenue Worksheet must be submitted in the first year the business is a QHTC for six or more months, and in all subsequent years. If you claim a tax credit carryover, attach a copy of the Form D-20CR for each year in which the carryover originated.
Documents you need
- Form D-20, the DC corporate franchise tax return: the credits entered on Form D-20CR are claimed on it, so the two are filed together.
- QHTC Self-Certification completed on MyTax.DC.gov: required even if the company was certified as a QHTC before.
- Certification of Gross Revenue Worksheet: submit it in the first year the business is a QHTC for six or more months, and in all subsequent years.
- A copy of Form D-20CR for each year from which a carryover originated: attach when you claim a tax credit carryover.
- FP-333, Tax Credit For Wages Paid To Qualified Employees (FR-399 QHTC Instruction Book): the worksheet the Part A credit comes from.
- FP-334, Tax Credit For Wages Paid To Qualified Disadvantaged Employees (FR-399 QHTC Instruction Book): the worksheet the Part B credit comes from.
- Retraining Costs Tax Credit Worksheet (FR-399 QHTC Instruction Book): the worksheet the Part C credit comes from.
How to fill out D-20CR
Enter the tax year and taxpayer details
At the top, enter the tax return year beginning and ending dates, your taxpayer identification number and the business name exactly as shown on Form D-20.
Complete Part A, Lines 1 and 2
On Line 1 enter the number of eligible employees. On Line 2 enter the total wages paid during the first 24 months of employment to qualified employees, who must be hired after December 31, 2017.
Enter the Part A credit
On Part A, Line 3 enter the credit from FP-333, Line 12, in the FR-399 QHTC Instruction Book. The credit per employee is limited to the lesser of 5% of the employee's wages or the cap printed on the form.
Complete Part B, Lines 1 to 3
Enter the employees eligible in the first year (Line 1) and the months in the first year (Line 2). On Line 3 enter the total wages paid during the tax year to qualified disadvantaged employees.
Enter the Part B credit
On Part B, Line 4 enter the credit from FP-334, Line 13. It is 50% of qualified disadvantaged employee wages paid during the first 24 months of employment, within the per-employee limit printed on the form.
Complete Part C, Lines 1 to 3
Enter the number of employees eligible in the first 12 months (Line 1) and the total retraining expenditures paid or incurred (Line 2). On Line 3 enter the credit from the Retraining Costs Tax Credit Worksheet, within the per-employee limit printed on the form.
Fill in Part D, Lines 1a to 1c
Line 1a is the Part A, Line 3 credit plus any carryover; Line 1b is the amount used this return; Line 1c is the amount carried forward. A carryover is allowed only for wages of a qualified employee hired before October 1, 2019.
Fill in Part D, Lines 2 and 3
Copy the Part B, Line 4 credit to Line 2 and the Part C, Line 3 credit to Line 3. Neither credit may be carried forward.
Total the credits on Lines 4a and 4b
Line 4a is the sum of Lines 1b, 2 and 3. Line 4b is the total non-refundable QHTC credits carried forward, from Line 1c.
Transfer the total to Schedule UB
Enter the Part D, Line 4a amount on Schedule UB, Line 2 of the Form D-20 package.
Review and download the completed PDF
Check that the business name and taxpayer identification number match Form D-20 and that each credit agrees with its worksheet. Download or print the completed PDF from FillingPDF and assemble it with Form D-20 and the other items described under How to submit.
How to submit D-20CR
Form D-20CR is submitted together with the Form D-20 corporate franchise tax return; it has no filing channel or address of its own printed on it.
- With Form D-20: include the completed D-20CR in the package or filing for the D-20 and follow the OTR submission instructions for that return.
- With supporting items: include the Certification of Gross Revenue Worksheet when it is required, and copies of earlier D-20CR forms when you claim a carryover.
- Self-certification: complete the QHTC Self-Certification on MyTax.DC.gov; the instructions require it in addition to the form.
Enter the non-refundable credits from Part D, Line 4a, on Schedule UB, Line 2. FillingPDF lets you fill out and download the PDF; submission follows the OTR channels used for Form D-20.
Common mistakes to avoid
- Filing Form D-20CR without a Form D-20 return; the instructions say the company must file D-20 to claim the credits.
- Skipping the QHTC Self-Certification on MyTax.DC.gov because the company was certified before; the instructions require it every time.
- Leaving out the Certification of Gross Revenue Worksheet in the first year the business is a QHTC for six or more months, or in later years.
- Carrying forward the Part B or Part C credit; the instructions say neither may be carried forward.
- Carrying forward a Part A credit that was obtained for wages of an employee hired on or after October 1, 2019; the form's note allows it only for employees hired before that date.
- Claiming a carryover without attaching a copy of the D-20CR for the year in which it originated.
- Claiming Part A for an employee hired on or before December 31, 2017; a qualified employee must be hired after that date.
- Entering the Part D total anywhere but Schedule UB, Line 2; Line 4a is the amount that goes there.
- Estimating the credits instead of taking them from FP-333, FP-334 and the Retraining Costs Tax Credit Worksheet.
Frequently asked questions
What is Form D-20CR?
Form D-20CR, QHTC Corporate Business Tax Credits, is the DC Office of Tax and Revenue schedule on which a certified Qualified High Technology Company claims its credits against the corporate franchise tax. It has Parts A to C for the credits and Part D to summarize them. It is filed with Form D-20.
Is Form D-20CR a DC business license?
No. Form D-20CR is a tax credit schedule, filed with the Form D-20 corporate franchise tax return by a certified QHTC. It reports credits for wages and retraining costs; for a dc business license, check the District's licensing agency.
Who can file Form D-20CR?
A corporation certified as a Qualified High Technology Company (QHTC) may file it, including an LLC that has elected to be treated as a corporation for Federal tax purposes. The company must also file Form D-20 and complete the QHTC Self-Certification on MyTax.DC.gov.
Can I carry forward QHTC credits from Form D-20CR?
Only the Part A credit, and only if it was obtained for wages of a qualified employee hired before October 1, 2019; it may be carried forward for 10 years. The Part B and Part C credits may not be carried forward. Attach the earlier D-20CR when you claim a carryover.
Do I need to complete the QHTC Self-Certification every year?
The instructions say the QHTC Self-Certification on MyTax.DC.gov must be completed to claim the credits, even if the company has been certified as a QHTC before. Complete it in addition to filing Form D-20CR with Form D-20.
When do I submit the Certification of Gross Revenue Worksheet?
Submit it with Form D-20CR in the first year the business is a QHTC for six or more months, and in all subsequent years, according to the form's instructions.
Where does the total from Part D go?
Enter the non-refundable credits from Part D, Line 4a, on Schedule UB, Line 2. Line 4a adds Lines 1b, 2 and 3, so it counts only the credits used on this return, not the amount carried forward.
Can I fill out Form D-20CR online on FillingPDF?
Yes. You can fill out the fillable PDF online on FillingPDF and download or print it. FillingPDF is an independent service and does not file the form with OTR; you submit it with Form D-20 through the OTR channels.
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