Form FR-399, Qualified High Technology Companies (QHTC), is the 2024 booklet from the DC Office of Tax and Revenue (OTR) that explains who counts as a Qualified High Technology Company, which DC tax credits and benefits apply, and how to claim them. Where it touches DC property tax, it describes a reduction in real property tax for qualified leasehold improvements and states that the QHTC personal property tax exemption ended on July 1, 2021. On this page you can fill out the form online on FillingPDF and download or print the completed PDF; the official PDF and the QHTC self-certification are published by OTR.
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What is FR-399?
Form FR-399, Qualified High Technology Companies (QHTC) is the Office of Tax and Revenue (OTR) booklet for tax year 2024 that defines a Qualified High Technology Company, lists the DC tax benefits available to one, and contains the worksheets and claim forms used to take the credits.
OTR is part of the Office of the Chief Financial Officer of the Government of the District of Columbia. The booklet reflects the QHTC Tax Incentives Modification Amendment Act of 2020 and the Qualified High Technology Company Tax Amendment Act of 2024, which repealed or limited many earlier benefits. It states that QHTCs are now taxed at the normal business franchise tax rate and that the reduced 3% rate on capital gain from a QHTC investment was permanently repealed effective October 1, 2024.
Besides the eligibility rules and the permitted-activity lists, the booklet includes:
- a Retraining Costs for Qualified Disadvantaged Employees Tax Credit Worksheet;
- Form FP-332, the retraining costs claim;
- Form FP-333, the claim for wages paid to qualified employees;
- Form FP-334, the claim for wages paid to qualified disadvantaged employees;
- the Certification of Gross Revenue Worksheet.
The QHTC self-certification itself is not on this PDF. Since January 1, 2019 it is completed online at MyTax.DC.gov.
Who needs to file FR-399?
Any business that qualifies and wishes to be certified as a Qualified High Technology Company uses the QHTC self-certification and this booklet. Under the booklet's definition, a QHTC is an individual or entity organized for profit that leases or owns an office in the District, has 10 or more qualified employees in DC, derives at least 51% of its gross revenues earned in the District from certain permitted activities, and is registered with the DC Government as a business.
The booklet excludes:
- an individual or entity that derives 51% or more of its gross revenues from operating, in the District, an online or brick and mortar retail store, a data-switching or telecommunications equipment facility, or a building or construction company;
- a professional athletic team;
- a business entity located in the DC Ballpark TIF Area;
- a holder of a sports wagering license listed in DC Code § 36-621.05(b)(1).
The credit worksheets and Forms FP-332, FP-333 and FP-334 are for incorporated QHTCs. An unincorporated QHTC is exempt from the unincorporated business franchise tax but files a D-65 Partnership Return, or a D-40 Individual Income Tax Return with Federal Schedule C attached. The self-certification must be completed by an Owner, General Partner or Officer authorized to sign.
When to file FR-399
The QHTC Self-Certification must be filed annually in order to obtain a QHTC certificate of benefits, and it must be completed before you claim any QHTC credit. The credit forms in the booklet travel with the return for the tax year they cover: incorporated QHTCs attach them to Form D-20. The Certification of Gross Revenue Worksheet is filed with Form D-20, Form D-65, or Form D-40 with Federal Schedule C. The booklet prints no separate due date; the return's own due date applies, so check the return booklet. Carryforward credits for relocation costs, retraining costs and wages to qualified disadvantaged employees cannot be claimed for tax year 2020 or later. OTR may audit a company that has self-certified.
Documents you need
- Online QHTC Self-Certification, completed at MyTax.DC.gov before any QHTC credit or benefit is claimed.
- Form D-20, DC Corporate Franchise Tax Return, for an incorporated QHTC claiming credits, with the QHTC oval on page 1 filled in.
- Form D-20CR, QHTC Corporate Business Tax Credits, if you claim any QHTC tax credits.
- Schedule UB from the D-20 instruction booklet, if you claim QHTC tax credits.
- Certification of Gross Revenue Worksheet, filed with Form D-20, D-65, or D-40 with Federal Schedule C.
- Form FP-332, FP-333 or FP-334, only for the credit you claim: retraining costs, wages to qualified employees, or wages to qualified disadvantaged employees.
- Form D-65 Partnership Return, or Form D-40 with Federal Schedule C attached, for an unincorporated QHTC.
How to fill out FR-399
Confirm your company is a QHTC
Check the booklet's definition: for-profit, office owned or leased in DC, 10 or more qualified employees, at least 51% of DC gross revenue from permitted activities, and DC business registration. Check the exclusions before continuing.
Complete the online self-certification
An Owner, General Partner or Officer authorized to sign completes it at MyTax.DC.gov. It is not filled out on this PDF and must be done before you claim credits.
Fill the Certification of Gross Revenue Worksheet
Enter the tax year dates, company name and TIN. In Column 1 list each DC location separately, in Column 2 the DC gross revenue from each permitted activity (A through E), in Column 3 their total, in Column 4 non-permitted revenue, and in Column 5 the sum of Columns 3 and 4.
Complete the retraining credit worksheet
For each qualified disadvantaged employee enter the name (line 1), taxpayer identification number (line 2), date employed in the District (line 3), eligible training expense (line 4) and prior-year credit (line 5). Line 6 is line 4 minus line 5.
Complete Form FP-332
Enter the tax year, company name and TIN, then for each employee the name, TIN, date of employment, months employed and retraining costs. Figure Columns A through E, total them on line 12 and enter the current-year amount on line 13.
Complete Form FP-333 if it applies
For qualified employees, enter each employee's name, TIN, date hired, calendar months and wages paid, and apply the printed limit in the columns. Total on line 12 and enter the credit on line 13.
Complete Form FP-334 if it applies
For qualified disadvantaged employees, list each employee in the same layout as FP-333, using the percentage and maximum printed on FP-334. Total on line 12 and enter the credit on line 13.
Sign each claim form
Under the penalty of perjury statement, the Owner or Officer signs, and enters the company name, date, address, telephone number and email address.
Review, download and attach
Check each worksheet against your D-20CR and return, then download or print the completed PDF from FillingPDF. Assemble the package described under How to submit.
How to submit FR-399
The QHTC self-certification is online only; the credit worksheets and claim forms go to OTR as attachments to the business return.
- Online self-certification: complete it at MyTax.DC.gov. Since January 1, 2019 it can only be submitted online, by an Owner, General Partner or Officer authorized to sign. It replaces the old "QHTC-CERT" filed with returns.
- Incorporated QHTCs: complete Form D-20 and fill in the "if Certified QHTC" oval on page 1. Attach Form D-20CR (QHTC Corporate Business Tax Credits), the Certification of Gross Revenue Worksheet, Schedule UB and the claim form you use (FP-332, FP-333 or FP-334).
- Unincorporated QHTCs: file Form D-65 or Form D-40 with Federal Schedule C, with the Certification of Gross Revenue Worksheet.
The booklet prints no mailing address; follow the filing instructions in the booklet for the return you use (D-20, D-65 or D-40). The QHTC indicator on the return must be filled in for QHTC status to be recognized. FillingPDF lets you fill out and download the PDF; submission follows the OTR channels above.
Common mistakes to avoid
- Trying to self-certify on paper; the self-certification can only be submitted online at MyTax.DC.gov.
- Leaving the QHTC oval or indicator on the return unfilled; the booklet says QHTC status is not recognized without it.
- Claiming a carryforward of the relocation, retraining or disadvantaged-wages credits for tax year 2020 or later; those carryforwards cannot be claimed.
- Claiming the QHTC personal property tax exemption, the 6% rate or the reduced 3% capital gain rate; the booklet says these have ended.
- Counting a business as a QHTC with fewer than 10 qualified employees in the District, or when 51% or more of gross revenue comes from retail or construction operations.
- Including retail store or data hotel revenue in Columns A through E of the Certification of Gross Revenue Worksheet.
- Claiming wages credits for a key employee or a temporary or seasonal employee, or for an employee hired because of a strike, lockout or displacement.
- Self-certifying without meeting every QHTC condition; a penalty may be imposed if it is not made in good faith.
Frequently asked questions
What is Form FR-399?
Form FR-399 is the Office of Tax and Revenue booklet for Qualified High Technology Companies (QHTC) in the District of Columbia. It defines a QHTC, lists the remaining tax benefits and contains the retraining, wages and gross revenue worksheets and Forms FP-332, FP-333 and FP-334.
Is FR-399 a DC property tax form?
Not mainly. It is a QHTC booklet, but it notes a reduction in real property tax for qualified leasehold improvements made by or for a QHTC tenant, and says the QHTC personal property tax exemption ended effective July 1, 2021. For DC property tax questions, contact OTR.
Can I complete the QHTC self-certification on the FR-399 PDF?
No. Since January 1, 2019 the self-certification can only be submitted online at MyTax.DC.gov, by an Owner, General Partner or Officer authorized to sign. The PDF holds the eligibility rules, worksheets and claim forms.
Who qualifies as a Qualified High Technology Company?
A for-profit individual or entity that leases or owns an office in DC, has 10 or more qualified employees in DC, earns at least 51% of its DC gross revenue from permitted activities and is registered as a DC business. Retail, construction and certain other businesses are excluded.
What do I attach to claim a QHTC tax credit?
An incorporated QHTC attaches to Form D-20: Form D-20CR, the Certification of Gross Revenue Worksheet, Schedule UB, and Form FP-332, FP-333 or FP-334 for the credit claimed. Fill in the QHTC oval on the D-20, and complete the online self-certification.
Does an unincorporated QHTC use these credit forms?
No. The credits and Forms FP-332, FP-333 and FP-334 are for corporations. An unincorporated QHTC is exempt from the unincorporated business franchise tax and files Form D-65, or Form D-40 with Federal Schedule C, with the Certification of Gross Revenue Worksheet.
How often must the QHTC self-certification be filed?
Annually. The booklet says it must be filed each year to obtain a QHTC certificate of benefits. Self-certifying does not stop OTR from auditing compliance, and a penalty may be imposed if the certification is not made in good faith.
Can I fill out Form FR-399 online on FillingPDF?
You can fill out the PDF online on FillingPDF and download or print it. FillingPDF is an independent service that does not file anything with OTR or perform the self-certification; submission follows the OTR channels described on this page.
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