5 ELIGIBILITY
A QHTC is a company that:
• Is an individual or entity organized for profit
• Maintains an office, headquarters, or base of operations
FINANCIAL INCENTIVES DC DOING BUSINESS GUIDE 2018/2019 65
in DC
• Has two or more employees in DC
• Derives at least 51% of its revenue earned in the District
from qualifying high-tech activities
TECH INCENTIVE BENEFITS
GROW IN DC
• 0% corporate franchise tax for first 5 years of business in DC
• Capital gains tax only 3% for qualifying investments in
QHTCs (effective January 2019)
• New hire wage tax credit: up to $15,000 annually (for 24
months) for each qualifying employee
• New hire retraining tax credit: up to $20,000 per
qualifying employee
• 10-year tax exemption from the date of acquisition on
personal property used for operating your business
MOVE TO DC
• Relocation tax credit: up to $7,500 for each employee
• 5-year freeze on real property taxes for office
improvements
THRIVE IN DC
• Lifetime reduction of corporate franchise tax from 8.25%
to 6%
• Sales tax exemption on purchase of hardware, software
and equipment, and on qualifying sales
• Increased business expense deduction: up to $40,000 for
depreciable assets
QHTC BENEFITS INFO
For more information about permitted high-tech activities and
claiming QHTC benefits, email DMPED.eom@dc.gov.
CLAIMING DC TECH INCENTIVES
To self-certify your business through the DC Office of
Tax and Revenue, complete QHTC FR-399 worksheets at
bit.ly/qhtcforms, or contact the District’s Office of Tax and
Revenue, Tax Form Center at (202) 442-4829.
You can write to OTR requesting a Declaratory Order to
identify, before moving your business to DC, if you would be
eligible for DC’s QHTC benefits. Visit bit.ly/techDO or call
(202) 442-4829 for more information.
SUPERMARKET TAX EXEMPTION
Through the Supermarket Tax Exemption Act of
2000, the District waives certain taxes and fees to
supermarkets that locate in specific neighborhoods. The
incentive encourages investment in areas lacking access
to groceries and fresh food.
ELIGIBILITY
Businesses must be registered grocery stores located
within an eligible area and offer a full line of meat,
seafood, fruits, vegetables, dairy products, dry groceries,
household products, and sundries. There is no size
requirement.
View eligible areas on the map at incentives.dc.gov.
BENEFITS
Qualifying supermarkets receive the following benefits for
10 years:
• Real property tax exemption
• Business license fee exemption
• Personal property tax exemption
• Sales and use tax exemption on building materials
necessary for construction
DMPED · (202) 727-6365 · dcbiz.dc.gov
BUSINESS INCENTIVES MAP
Visit DMPED’s online DC Business Incentives Map at
incentives.dc.gov to determine if your business is eligible for
a location-based incentive.
/incentives.dc.gov
/incentives.dc.gov
/dcbiz.dc.gov
link