D.C. Mun. Regs. tit. 9, r. 9-1108

Current through Register Vol. 71, No. 36, September 6, 2024

Rule 9-1108 - UNINCORPORATED BUSINESS FRANCHISE TAX EXEMPTION

1108.1

A QHTC that is not a corporation is exempt from the unincorporated business franchise tax. A QHTC that is not a corporation may claim a partial refund of its retraining costs as provided by D.C. Official Code § 47-1817 by timely filing a Claim for Refund-QHTC Retraining Cost, Form FP-332. A QHTC that is not a corporation may claim the sales and personal property tax benefits provided by the Act as well as the real property benefits of Title III of the Act.

1108.2

The following are examples of the application of § 1108.1:

(a) Company F, a Certified QHTC, is a limited liability company that has elected for Federal tax purposes to be taxed as a partnership. D.C. Official Code § 47-1808.1(5) provides that Company F is exempt from the unincorporated business franchise tax. The partnership QHTC will file a District information income tax return, Form D-65, and the partnership income will flow through to the partners. The partners who are residents of the District will report their prorated partnership income on their District individual income tax returns, Form D-40. The partners who are not residents of the District will report their prorated partnership income on their individual income tax returns in the state in which they are a resident.

(b) Company F, a Certified QHTC, is a limited liability company that has elected for Federal tax purposes to be taxed as a corporation. The statute provides that Company F is entitled to reduce its corporate franchise tax liability by the credits provided by Title II and IV of the Act, - the credit for reduction in the corporation tax rate, the relocation credit, the wage credit and the retraining credit. Also, Company F can claim the sales and personal property tax benefits provided by the Act as well as the real property benefits of Title ¢ó of the Act.

D.C. Mun. Regs. tit. 9, r. 9-1108

Final Rulemaking published at 49 DCR 2142 (March 8, 2002)