Update: DC’s Qualified High Tech Company (QHTC) Changes: Nice Benefits to LivingSocial
My colleague Kate Tummarello wrote last year about the District of Columbia’s “New E-Conomy Transformation Act of 2000”, a 2001 law which set up tax benefits encouraging technological innovation. The Act granted tax benefits to “Qualified High Technology Companies” (QHTCs), certain DC-based, for-profit businesses that make most of their revenue from the sale of products and services related to information technology.
Among other incentives, the Act granted to QHTCs tax credits for wages and costs of retraining qualified disadvantaged employees, credits for wages to qualified non-“disadvantaged” employees, exemptions from DC sales and use tax and reduction of DC’s corporate franchise tax rate, and exemption for 5 years from DC’s corporate franchise tax.
In April 2012, DC Mayor Gray proposed expansions of the QHTC program, in his “Social E-Commerce Job Creation Incentive Act of 2012.” The 2012 legislation, enacted in part and still pending in part, would accomplish 3 major things:
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