FR-399, Qualified High Technology Companies (QHTC), is the instruction booklet from the District of Columbia Office of Tax and Revenue (OTR) for businesses that want to be certified as a Qualified High Technology Company and claim the QHTC tax benefits. It is not a DC property tax return: the booklet touches property tax only to describe the real property tax reduction for qualified leasehold improvements and the end of the personal property tax exemption. On this page you can fill out the form online on FillingPDF and download or print the completed PDF; the booklet itself is published by OTR.
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What is FR-399?
FR-399, Qualified High Technology Companies (QHTC), is the 2025 instruction booklet from the DC Office of Tax and Revenue (OTR), part of the Office of the Chief Financial Officer, explaining who qualifies as a QHTC, which tax benefits remain, and how to claim them.
The first page states that the return must be filed and paid electronically and that the document provides instructions only. The booklet covers:
- What's new for tax year 2025 and reminders about the repeal or limiting of earlier QHTC benefits.
- The definition of a QHTC, the businesses it excludes and the list of permitted activities.
- The online QHTC Self-Certification, which replaced the earlier filing of individual "QHTC-CERTs" with returns.
- The tax credits for incorporated QHTCs (retraining costs and wages for qualified disadvantaged employees, and wages for qualified employees) and the benefit for unincorporated QHTCs.
- Four attachments: the retraining worksheet and Forms FP-332, FP-333 and FP-334, plus the QHTC Certification of Gross Revenue Worksheet.
The credits themselves are taken on other returns. Corporations use Form D-20 with Form D-20CR and Schedule UB; unincorporated QHTCs file Form D-65 or Form D-40 with Federal Schedule C. The booklet also notes that the 3% reduced rate on capital gain from the sale or exchange of a QHTC investment was repealed, and that the personal property tax exemption for QHTCs ended effective July 1, 2021.
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 described in this booklet. A QHTC must:
- be an individual or entity organized for profit;
- lease or own an office in the District;
- have 10 or more qualified employees in DC;
- derive at least 51% of its gross revenues earned in the District from permitted activities under DC Code §47-1817.01(5)(A)(iii); and
- be registered with the DC Government as a business.
Corporations that are certified QHTCs use Forms FP-332, FP-333 and FP-334 to claim the retraining, qualified-employee wage and disadvantaged-employee wage credits. Unincorporated QHTCs are exempt from the unincorporated business franchise tax and can claim the real property tax reduction for qualified leasehold improvements made by, or for, a QHTC tenant.
The booklet excludes:
- businesses that earn 51% or more of their gross revenues from operating an online or brick and mortar retail store, an electronic equipment facility, or a building or construction company in the District;
- professional athletic teams;
- entities in the DC Ballpark TIF Area;
- holders of a sports wagering license listed in DC Code §36-621.05(b)(1).
Self-certification must be completed by an Owner, General Partner or Officer authorized to sign.
When to file FR-399
For tax year 2025, the filing deadline stated in the booklet is April 15, 2026. Fiscal year filers are due on the 15th day of the 4th month following the close of the fiscal year.
The QHTC Self-Certification must be filed annually to obtain a QHTC certificate of benefits, and prior-year return data, including QHTC revenues, employee credits and exemptions, is requested for future certifications. A company claiming a QHTC credit must complete the self-certification before attaching the credit forms to its Form D-20. The booklet sets no separate due date for the worksheets FP-332, FP-333, FP-334 or the Certification of Gross Revenue Worksheet: they travel with the return they are filed with.
Documents you need
- Online QHTC Self-Certification at MyTax.DC.gov, completed before claiming any QHTC credit or other QHTC benefit.
- Form D-20, DC Corporate Franchise Tax Return, with the "if Certified QHTC" oval filled in, for a corporate QHTC claiming credits.
- Form D-20CR, QHTC Corporate Business Tax Credits, when a corporate QHTC is claiming any QHTC tax credit.
- Schedule UB from the D-20 instruction booklet, attached when a corporate QHTC claims QHTC tax credits.
- QHTC Certification of Gross Revenue Worksheet (page 15 of the booklet), filed with Form D-20, D-65, or D-40 with Federal Schedule C.
- Form FP-332 (retraining costs), FP-333 (wages to qualified employees) or FP-334 (wages to qualified disadvantaged employees): only the one for the credit you claim.
- Form D-65, or Form D-40 with Federal Schedule C, for an unincorporated QHTC.
How to fill out FR-399
Confirm your QHTC eligibility
Check the five QHTC conditions and the list of excluded businesses in the booklet, including 10 or more qualified employees in DC and at least 51% of District gross revenues from permitted activities.
Complete the online self-certification
Self-certify at MyTax.DC.gov; it is not done on the PDF. An Owner, General Partner or Officer authorized to sign must submit it, and it must be repeated annually.
Fill in the retraining worksheet
On the worksheet on page 8, enter for each qualified disadvantaged employee the name (line 1), taxpayer identification number (line 2), date employed in the District (line 3) and training expense (line 4). Enter the prior year credit on line 5 and the current year credit on line 6 (line 4 minus line 5).
Complete Form FP-332
Enter the tax year dates, company name and taxpayer identification number. For each employee list the TIN, employment date and months employed, then work across Columns A to E; Column E is Column C minus Column D. Total the columns on line 12 and enter the result on line 13.
Complete Form FP-333
For wages paid to qualified employees, enter the tax year dates, company name and TIN, then each employee's name, TIN, date hired, calendar months and wages paid. Add the totals on line 12 and enter the current year credit on line 13.
Complete Form FP-334
For wages paid to qualified disadvantaged employees, fill in the same identifying information and the employee lines, along with the QHTC activities each employee works on in the District. Enter the totals on line 12 and the current year credit on line 13.
Start the gross revenue worksheet
On the Certification of Gross Revenue Worksheet, enter the tax year beginning and ending dates, the company name and TIN. In Column 1 list the address of each DC location on a separate line.
Enter revenue by permitted activity
In Column 2, for each location, enter gross revenue earned in DC under each permitted activity, A through E, excluding retail store and Data Hotel revenue. Column 3 is the total of A through E, Column 4 is non-permitted revenue and Column 5 is Columns 3 and 4 added.
Sign the claim forms
Each of FP-332, FP-333 and FP-334 carries a declaration under penalty of perjury. The owner or officer signs and dates it and enters the company name, address, telephone number and email address.
Review, download and assemble
Check every total and make sure the TINs and dates match your records. Download or print the completed PDF from FillingPDF and assemble it with the return described under How to submit.
How to submit FR-399
The booklet names two electronic channels: the online QHTC Self-Certification and the electronic filing of the return that carries your credits. It lists no mailing address.
- Self-certification: complete it online at MyTax.DC.gov. It can only be submitted online as of January 1, 2019, by an Owner, General Partner or Officer authorized to sign.
- Corporate credits: the booklet states that the return must be filed and paid electronically. Fill in the "if Certified QHTC" oval on page 1 of Form D-20 and attach Form D-20CR, the QHTC Certification of Gross Revenue, Schedule UB and the claim form you need (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 QHTC indicator on the return must be filled in for QHTC status to be recognized. If the self-certification is not made in good faith, a penalty may be imposed. The OTR page for the booklet is at https://otr.cfo.dc.gov/publication/2025-fr-399-qualified-high-technology-companies-qhtc. FillingPDF lets you fill out and download the PDF; submission follows the channels above.
Common mistakes to avoid
- Trying to submit the QHTC Self-Certification on paper; the booklet says it can only be submitted online at MyTax.DC.gov.
- Leaving the "if Certified QHTC" oval on page 1 of Form D-20 blank; the QHTC indicator must be filled in for QHTC status to be recognized.
- Including revenue from a retail store or an electronic equipment facility (Data Hotel) in columns A through E of the Certification of Gross Revenue Worksheet.
- Claiming a carryforward of the relocation, retraining or disadvantaged-employee wage credits for tax year 2020 or later; the booklet says these carryforwards cannot be claimed.
- Counting a temporary or seasonal employee, or a key employee, as a qualified disadvantaged employee for the retraining or wage credits.
- Qualifying as a QHTC with fewer than 10 qualified employees in the District; the old threshold of 2 no longer applies.
- Combining several DC locations on one line of the gross revenue worksheet instead of listing each location separately.
- Claiming a credit without attaching Form D-20CR and Schedule UB to the Form D-20.
- Expecting the personal property tax exemption for QHTCs; it was eliminated effective July 1, 2021.
Frequently asked questions
What is Form FR-399 for?
FR-399 is the DC Office of Tax and Revenue booklet that explains who qualifies as a Qualified High Technology Company, what tax benefits remain and how to claim them. It includes the credit claim forms FP-332, FP-333 and FP-334 and the Certification of Gross Revenue Worksheet.
Is FR-399 a DC property tax form?
No. It is a QHTC instruction booklet, not a DC property tax return. It mentions property tax only to say that unincorporated and incorporated QHTCs may get a real property tax reduction for qualified leasehold improvements and that the personal property tax exemption ended July 1, 2021.
Who qualifies as a Qualified High Technology Company in DC?
A for-profit individual or entity that leases or owns a District office, has 10 or more qualified employees in DC, earns at least 51% of its District gross revenues from permitted activities and is registered as a DC business. Retail, construction and certain other businesses are excluded.
How do I self-certify as a QHTC?
Self-certify online at MyTax.DC.gov. As of January 1, 2019 it can only be submitted online, by an Owner, General Partner or Officer authorized to sign. It must be filed annually to obtain a QHTC certificate of benefits.
When is the 2025 FR-399 filing deadline?
April 15, 2026 for tax year 2025. Fiscal year filers are due on the 15th day of the 4th month following the close of their fiscal year. The self-certification itself must be filed every year.
What do I attach to claim a QHTC tax credit?
A corporate QHTC that has completed the self-certification attaches Form D-20CR, the QHTC Certification of Gross Revenue, Schedule UB and the matching claim form (FP-332, FP-333 or FP-334) to Form D-20, and fills in the QHTC oval on the D-20.
Do unincorporated QHTCs get tax credits?
No. The booklet lists only a real property tax reduction for qualified leasehold improvements made by, or for, a QHTC tenant. An unincorporated QHTC is exempt from the unincorporated business franchise tax but must file Form D-65, or Form D-40 with Federal Schedule C.
Can I fill out FR-399 online on FillingPDF?
Yes. You can fill out the PDF online on FillingPDF and download or print it. FillingPDF is an independent service and does not file anything with OTR; the self-certification and the return go through the electronic channels described under How to submit.
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