Below is a list of credits that are available on your North Dakota return:
Credit for Taxes Paid to Another State
If you were a Full-year resident to North Dakota, you may qualify for a credit if you paid income taxes to North Dakota and to another state from the same income.
Agricultural Commodity Facility Investment Credit
If you made qualifying purchases, improvements or investments in a state approved zone for the North Dakota Renaissance Zone Program, you may be allowed a credit.
Seed Capital Investment Credit
Enter the amount of qualified investments made in a business that is certified for the seed capital investment credit program.
Biodiesel Fuel Supplier Wholesaler Credit
If you are a licensed fuel supplier in North Dakota and you blended biodiesel or green diesel fuel with a minimum 5% blend that meets ASTM specifications, you are allowed a credit that is equal to 5 cents per gallon blended. The unused portion of the current tax year credit may be carried over up to 5 tax years.
Biodiesel Fuel Seller Retailer Credit
A tax credit is allowed to a North Dakota licensed fuel seller (retailer) of biodiesel or green diesel fuel. The credit is equal to 10% of the costs to adapt or add equipment to the seller’s facility in ND to enable it to sell biodiesel or green diesel with a minimum 2% blend that meets ASTM specifications. The credit is allowed in each of 5 tax years, starting with the tax year in which sales of the eligible fuel begin.
Partnership Plan Long-term Care Insurance Credit
If you are a North Dakota resident and paid premiums for a partnership plan long-term care insurance policy, you are allowed a credit. This credit is equal to the premiums you paid during the tax year with a maximum credit of up to $250 ($500 for both spouses if they are both insured).
Angel Fund Investment Credit
Your allowable credit is equal to the smaller of $45,000 or the sum of your Angel investment credit.
Angel Fund Investment Credit Purchased From Other Taxpayer
If the sum of all angel investor credits exceeds the $45,000 allowed, you can carry the unused credit forward for up to 5 years.
Endowment Fund Credit From Passthrough Entity
If you made one or more contributions to a qualified endowment fund totaling at least $5,000, there is a credit allowed.
Housing Incentive Fund Tax Credit
You may enter any unused housing incentive tax credit.
Automation Tax Credit
If you qualified for the automation tax credit under N.D.C.C. § 57-38-01.33, you would have received an approval letter from the North Dakota Office of State Tax Commissioner. You may also include any unused credit carried over from tax years 2014-2017.
Nonprofit Private Primary School Contribution Credit From Passthrough Entity
Effective 2019 and 2020 tax years individuals and C-Corps may also claim the credit. If you owned an interest in a partnership, S corporation, or other passthrough entity that qualified for the income tax credit for making a charitable contribution to a North Dakota nonprofit private primary school, enter of the total of nonprofit tax credits from Schedule K-1, 25% of the tax from Form ND-1, line 20 or $2,500, whichever is less. Individuals and C-Corps are also allowed to choose the lesser of 50% of contributions made to the school in addition to credit received from a passthrough entity. See Schedule ND-1PSC.
Nonprofit Private High School Contribution Credit From Passthrough Entity
Effective 2019 and 2020 tax years individuals and C-Corps may also claim the credit. If you owned an interest in a partnership, S corporation, or other passthrough entity that qualified for the income tax credit for making a charitable contribution to a North Dakota nonprofit private high school, enter of the total of nonprofit tax credits from Schedule K-1, 25% of the tax from Form ND-1, line 20 or $2,500, whichever is less. Individuals and C-Corps are also allowed to choose the lesser of 50% of contributions made to the school in addition to credit received from a passthrough entity. See Schedule ND-1PSC.
Nonprofit Private College Contribution Credit From a Passthrough Entity.
Effective 2019 and 2020 tax years individuals and C-Corps may also claim the credit. If you have an interest in a S corporation, a partnership or any other passthrough entity that is qualified for the making a charitable contribution to a nonprofit NorthDakota college enter your total of credits from your ND K-1, 25% of the tax amount on Form ND-1 line 20 or $2500 whichever is less. Individuals and C-Corps are also allowed to choose the lesser of 50% of contributions made to the school in addition to credit received from a passthrough entity. See Schedule ND-1PSC.
Automation Tax Credit
For tax years 2019-2022 , If you qualify for the automation tax credit under N.D.C.C. § 57-38-01.36, you would have received an approval letter from the North Dakota Office of State Tax Commissioner. You may also include any unused credit carried over for 5 tax years.
Developmentally Disabled/Mentally Ill Employee Tax Credit
If you qualify for the developmentally disabled or mentally ill employee tax credit you would receive a letter from the Department of Human Services and Vocational Rehabilitation Services in North Dakota. The maximum credit per employee is $1500.
Family Member Care Tax Credit-Schedule ND-1FC
A tax credit for payment of expenses to care for elderly or disabled family member.
To enter these credits on your North Dakota return, follow the steps below:
1. State Section
2. Edit
3. Credits
For more information regarding these credits, please click here.
