corporate income tax credits booklet - north dakota€¦ · line 21 angel fund investment ..... 8...

Ryan RauschenbergerTax Commissioner

North Dakota

Corporate Income Tax Credits

2 0 1 62 0 1 6

Go to www.nd.gov/tax fortax forms, guidelines, FAQs and more.

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Table of Contents

Form 40 Tax Credits BookletSchedule TC Page

Line1 Contributionstononprofitprivatecolleges ......................................................... 1

Line2 Contributionstononprofitprivatehighschools ................................................... 1

Line3 Contributionstononprofitprivateprimaryschools .............................................. 1

Line4 Geothermal,solar,windorbiomassenergydevice(priortoJanuary1,2015) ......... 1

Line5 Windenergydevicecredit(afterDecember31,2014) ......................................... 2

Line6 Employmentofindividualswithdevelopmentaldisabilitiesorchronicallymentallyill 2

Line7 Researchandexperimentalexpenditurecreditsgeneratedbythetaxpayer ............ 2

Line8 Researchandexperimentalexpenditurescreditpurchasedbythetaxpayer ............ 3

Line9 Wageandsalarycreditsfornewindustry .......................................................... 4

Line10 Paymenttoacertifiednonprofitdevelopmentcorporation .................................... 4

Line11 Renaissancezone ........................................................................................... 4

Line12 Biodieselorgreendieselproduction .................................................................. 4

Line13 Soybeanandcanolacrushingequipmentcosts ................................................... 5

Line14 Seedcapitalbusinessinvestment ..................................................................... 5

Line15 Biodieselorgreendieselfuelblending ............................................................... 5

Line16 Biodieselorgreendieselfuelsalesequipmentcosts ............................................ 5

Line17 Agriculturalcommodityprocessingfacilityinvestment ......................................... 6

Line18 Endowmentfundcontribution .......................................................................... 6

Line19 Microbusinessinvestmentandemployment ....................................................... 7

Line20 Internshipemployment ................................................................................... 8

Line21 Angelfundinvestment .................................................................................... 8

Line22 Angelfundinvestmentcreditpurchasedandcarriedforward ................................ 9

Line23 Workforcerecruitment .................................................................................... 9

Line24 Wagespaidtoamobilizedmilitaryemployee ..................................................... 9

Line25 Housingincentivefund ...................................................................................10

Line26 Automationmanufacturingequipmentpurchase ................................................10

Line27 RuralleadershipNorthDakotaprogramcontributions .........................................10 Appendix: Credit Features at a Glance Aquickreferenceguidetoallofthecreditsdescribedinthisbooklet. ..............11-14

2016 North Dakota Corporate Income Tax Credit Instructions Page 1

Dickinson Trinity Jr/High School (Dickinson)Forest River School (Fordville)Grace Lutheran Elem School (Fargo)Grand Forks Montessori Academy (GF)Hillcrest SDA School (Jamestown)Holy Family - St. Mary’s Elem School (GF)Holy Spirit Elem School (Fargo)Hope Christian Academy (Dickinson)Johnson Corners Christian Academy (Watford City)Light of Christ 7th and 8th Grade Academy (Bismarck)Little Flower Elementary School (Rugby)Martin Luther School (Bismarck)Missouri Valley Montessori School (Bis)Nativity Elementary School (Fargo)New Testament Baptist Christian School (Larimore)Oak Grove Lutheran Elem School (Fargo)Ojibwa Indian School (Belcourt)Our Redeemer’s Christian School (Minot)Prairie Learning Education Center (Raleigh)Prairie Voyager Adventist School (GF)Red River Adventist Elem School (Fargo)Shanley High-Sullivan Middle School (Fargo)Shiloh Christian School (Bismarck)St. Alphonsus Elementary School (Langdon)St. Anne Elementary School (Bismarck)St. Ann’s Catholic School (Belcourt)St. Bernard Mission School (Fort Yates)St. Catherine Elem School (Valley City)St. Johns Academy (Jamestown)St. Johns Elementary School (Wahpeton)St. Joseph Elementary School (Mandan)St. Joseph Elementary School (Devils Lake)St. Josephs Elementary School (Williston)St. Marys Elementary School (Bismarck)St. Michaels Elementary School (GF)Trinity Elementary East School (Dickinson)Trinity Elementary West School (Dickinson)Trinity Elementary School (West Fargo)Victory Christian School (Jamestown)Williston Trinity Christian School (Williston)

High schools

Anne Carlsen Center (Jamestown)Bishop Ryan Catholic School (Minot)Dakota Adventist Academy (Bismarck)Dakota Memorial School (Minot)Dickinson Trinity High School (Dickinson)Hope Christian Academy (Dickinson)Johnson Corners Christian Academy (Watford City)New Testament Baptist Christian School (Larimore)Oak Grove Lutheran High School (Fargo)Our Redeemer’s Christian School (Minot)

Prairie Learning Education Center (Raleigh)Shanley High School (Fargo)Shiloh Christian School (Bismarck)St. Mary’s Central High School (Bismarck)Williston Trinity Christian School (Williston)

CollegesJamestown College (Jamestown)North Dakota Independent College FundTrinity Bible College (Ellendale)United Tribes Technical College (Bismarck)University of Mary (Bismarck)

The tax credit for contributions made to all eligible schools in each category of institution is equal to the lesser of:

• 50%ofthecontributionsbutnottoexceed20%ofthetotalNorthDakotaincometaxdue for each corporation;

• $2,500.

A corporation that holds an interest in a passthroughentitythatqualifiesforanyofthe three credits may claim its share of the tax credit in proportion to its interest in the entity. The credit must be claimed in the same taxable year in which the taxable year of the passthrough entity ends.

Enter on line 1 the tax credit computed for contributionstononprofitprivateinstitutionsof higher education (and the North Dakota Independent College Fund).

Enter on line 2 the tax credit computed for contributionstononprofitprivateinstitutionsof secondary education.

Enter on line 3 the tax credit computed for contributionstononprofitprivateinstitutionsof primary education.

Foreachcontribution,attachacopyofareceiptfromthenonprofitprivateinstitution or a copy of a cancelled check (front and back).

Lines 4 and 5Geothermal, solar, wind or biomass energy device creditsN.D.C.C. § 57-38-01.8A corporation may claim a tax credit for the cost of acquisition and installation of a geothermal,solar,wind,orbiomassenergydevice installed beforeJanuary1,2015.

Lines 1, 2, and 3Contributions to nonprofit private colleges, high schools and primary schoolsNorth Dakota Century Code (N.D.C.C.) § 57-38-01.7Tax credits are allowed for contributions toqualifyingnonprofitprivateprimary,secondary and higher education schools located in North Dakota. A separate credit is allowed for each category of school. To qualify,acontributionmustbemadedirectlytoorspecificallydesignatedfortheexclusiveuse of a qualifying school. If a contribution ismadetoanaccount,fund,orentitybenefitingbothqualifyingandnonqualifyingschools,itqualifiesforthecreditonlyiftheentity provides the donor with a statement showingtheamountspecificallydesignatedfor the use of the qualifying school.

If a contribution is made to a qualifying school that provides education in one or more grades in both the primary school category (K through 8th grades) and secondary school category(9ththrough12thgrades),aseparatecredit is allowed for the amount contributed to each category of school. Unless the school provides the donor with a statement showing theamountspecificallydesignatedfortheuseofeachcategoryofschool,one-halfof the contribution will be deemed to have been made to each category of school. A corporation may elect to treat a contribution as having been made during a tax year if madeonorbeforetheduedate,includingextensions,forfilingForm40forthattaxyear.

Following are the qualifying schools in each categoryofinstitutions,butcanbesubjecttochange:

Grade schools

Academy for Children (Fargo)Anne Carlsen Center (Jamestown)Bishop Ryan Catholic School (Minot)Brentwood Adventist Christian School (Bis)Cathedral of the Holy Spirit Elementary School (Bismarck)Children’s Montessori Center (Fargo)Christ the King Elem School (Mandan)Dakota Adventist Academy (Bismarck)Dakota Memorial School (Minot)Dakota Montessori School (Fargo)Dickinson Adventist Christian School (Dickinson)

A corporation that holds an interest in a passthroughentitythatqualifiesforthiscredit may claim its share of the tax credit in proportion to its interest in the entity. The credit must be claimed in the same taxable year in which the taxable year of the passthrough entity ends.

Corporate taxpayers in a consolidated combined return may apply the credit against the aggregate tax liability on their North Dakota income tax return.

The credit may not exceed the corporation’s income tax liability. Any excess tax credits earned for wind energy devices installed after September30,2008,andbeforeJanuary1,2012,maybecarriedfowardtoeachofthethirty succeeding taxable years. Any excess taxcreditsforgeothermal,solar,orbiomassenergydevicesinstalledafterSeptember30,2008,andwindenergydevicesinstalledafterDecember31,2011,maybecarriedforwardto each of the ten succeeding taxable years.

Enteronline4thetaxcreditforanenergydeviceinstalledbeforeJanuary1,2015.Include on this line the amount of any unused credit being carried over from prior years.

Enteronline5thetaxcreditforawindenergydeviceinstalledafterDecember31,2014.

Attach a worksheet substantiating date ofpurchase,actualcostofacquisitionandinstallation,andcomputationofthetax credit. If the tax credit is received throughapassthroughentity,attacha statement showing the passthrough entity’s name and Federal Employer IdentificationNumber,andacopyof the statement received from the passthrough entity.

Line 6Employment of individuals with developmental disabilities or chronically mentally ill creditN.D.C.C. § 57-38-01.16A corporation may claim a tax credit for a portion of North Dakota wages paid to an individual with developmental disabilities or chronically mentally ill employee. The tax creditis5%ofupto$6,000inwagespaidtoeachsuchemployeeduringthefirsttwelve

Page 2 2016 North Dakota Corporate Income Tax Credit Instructions

months of employment. The credit may not exceed50%ofthetotaltaxliability.OnlyNorth Dakota wages actually paid during the taxable year may be considered for the tax credit. An employee of a subcontractor is considered an employee of the contractor to the extent of any wages paid under the contract.

Attachanaffidavitlistingtheamountofwagespaid,thename,andthesocialsecurity number of each employee.

Line 7Research and experimental expenditure credits generated by the taxpayerN.D.C.C. § 57-38-30.5A corporation claiming a federal credit and incurring research and experimental expenditures within North Dakota is entitled to a tax credit.

A worksheet must be attached showing computation of the base amount and credit.

1. The amount of the credit for taxpayers that earned or claimed a credit in taxable yearsbeginningbeforeJanuary1,2007,iscalculated as follows: a.Forthefirsttaxableyearbeginning

afterDecember31,2006,thecreditisequalto25%ofthefirst$100,000ofthequalifiedresearchexpensesforthe taxable year in excess of the base amountplus7½%ofallqualifiedresearchexpensesmorethan$100,000in excess of the base amount.

b. For the second taxable year beginning afterDecember31,2006,thecreditisequalto25%ofthefirst$100,000ofthequalifiedresearchexpensesfor the taxable year in excess of the baseamountplus11%ofallqualifiedresearch expenses for the taxable year morethan$100,000inexcessofthebase amount.

c. For the third taxable year beginning afterDecember31,2006,thecreditisequalto25%ofthefirst$100,000ofthequalifiedresearchexpensesforthe taxable year in excess of the base amountplus14½%ofallqualifiedresearch expenses for the taxable year morethan$100,000inexcessofthebase amount.

Forawindenergydeviceonly,acreditmay be earned for a device installed after December31,2014,andbeforeJanuary1,2017,ifconstructioncommencedpriortoJanuary1,2015.Thecreditisequalto3%ofthecostofthedevice,eachyearforfiveyears. The device must be installed in North Dakota on property owned or leased by the taxpayer.

• “Biomass energy device” means a systemusingagriculturalcrops,wastes,or residues; wood or wood wastes or residues;animalwastes;landfillgas;orother biological sources to produce fuel or electricity.

• “Geothermal energy device” means a system or mechanism or series of mechanisms designed to provide heating or cooling or to produce electrical or mechanicalpower,oranycombinationofthese,byamethodwhichextractsorconverts the energy naturally occurring beneath the earth’s surface in rock structures,water,orsteam.

• “Solar or wind energy device” means a system or mechanism or series of mechanisms designed to provide heating or cooling or to produce electrical or mechanicalpower,oranycombinationofthese,ortostoreanyofthese,bya method which converts the natural energy of the sun or wind.

Ifageothermal,solar,windorbiomassenergy device is part of a system which uses othermeansofenergy,onlythatportionof the total system directly attributable to thecostofthegeothermal,solar,windorbiomass energy device may be included in determining the amount of the credit. The costs of installation may not include costs ofredesigning,remodeling,orotherwisealtering the structure of a building in which ageothermal,solar,windorbiomassenergydevice is installed.

ForsuchdevicesinstalledafterDecember31,2006,ifownershipofthedeviceistransferredwhen installation is complete and the device isfullyoperational,apurchaserofthedeviceiseligibletoclaimthecredit,ratherthan the installer of the device. Subsequent purchasers of the device are not eligible for the tax credit.


Line 8Research and experimental expenditures credit purchased by the taxpayerN.D.C.C. § 57-38-30.5Ataxpayerthatiscertifiedasaqualifiedresearch and development company may electtosell,transferorassigntheunusedresearch and experimental expenditure taxcreditsearned.Aqualifiedresearchanddevelopmentcompanyisdefinedasacompany that:

• isaprimarysectorbusiness,

• haslessthan$750,000inannualgrossrevenues,and

• has not previously conducted research and development in North Dakota.

Formoreinformationonthecertificationprocessortoapplyforcertification,contactthe Director of the North Dakota Department of Commerce Division of Economic DevelopmentandFinanceat701.328.5300oraccess their website at www.business.nd.gov. Certificationapplicationsmaybeaccessedonthe Department of Commerce’s website.

Forthesale,transferorassignmentofthecredits,thetransferorandtransfereemustjointlysubmitFormCTS.ContacttheOfficeof State Tax Commissioner for a Form CTS. Theformmustbefiledwithin30daysafter the date of the transfer and is used to report the various information regarding the transaction as required by law.

• A taxpayer’s total credit assignment maynotexceed$100,000overanycombination of taxable years.

• The purchaser of the tax credit shall claim the credit beginning with the taxable year in which the credit purchase agreement was fully executed by the parties.

• The original purchaser of the tax credit maynotsell,assign,ortransferthecreditpurchased. The purchaser is not allowed to carry back any unused credits.

• If the amount of the credit available is changed as a result of an amended returnfiledbythetransferor,orastheresult of an audit conducted by the IRS ortheTaxCommissioner,thetransferorshall report to the purchaser the adjusted

d. For the fourth through the tenth taxable yearsbeginningafterDecember31,2006,thecreditisequalto25%ofthefirst$100,000ofthequalifiedresearchexpenses for the taxable year in excess ofthebaseamountplus18%ofallqualifiedresearchexpensesforthetaxableyearmorethan$100,000inexcess of the base amount.

e. For the eleventh taxable year beginning afterDecember31,2006,andforeachsubsequent taxable year in which the taxpayerconductsqualifiedresearchinthisstate,thecreditisequalto25%ofthefirst$100,000ofthequalifiedresearch expenses for the taxable year inexcessofthebaseamountplus8%ofallqualifiedresearchexpensesforthetaxableyearmorethan$100,000inexcess of the base amount.

f. The maximum annual credit a taxpayer mayobtainis$2milliondollars.Anycredit amount earned in the taxable yearinexcessof$2milliondollarsmay not be carried back or forward.

2. For taxpayers that have not earned or claimed a credit in taxable years beginning beforeJanuary1,2007,andwhobeginconductingqualifiedresearchinNorthDakotainanyofthefirstfourtaxableyearsbeginningafterDecember31,2006,the amount of the credit is equal to:a. 25%ofthefirst$100,000ofthe

qualifiedresearchexpensesforthetaxable year in excess of the base amountplus20%ofallqualifiedresearchexpensesmorethan$100,000in excess of the base amount. This rate applies through the tenth taxable year beginningafterDecember31,2006.

b. For the eleventh taxable year beginning afterDecember31,2006,andforeachsubsequent taxable year in which the taxpayerconductsqualifiedresearchinthisstate,thecreditisequalto25%ofthefirst$100,000ofthequalifiedresearch expenses for the taxable year inexcessofthebaseamountplus8%ofallqualifiedresearchexpensesforthetaxableyearmorethan$100,000inexcess of the base amount.

3. For taxpayers that have not earned or claimed a credit in taxable years beginning beforeJanuary1,2007,andwhobeginconductingqualifiedresearchinNorth

Dakota in any taxable year following the fourth taxable year beginning after December31,2006,theamountofthecredit is equal to:

25%ofthefirst$100,000ofthequalifiedresearchexpensesforthetaxable year in excess of the base amountplus8%ofallqualifiedresearch expenses for the taxable yearmorethan$100,000inexcessof the base amount.

“Baseamount”meansbaseamountasdefinedinsection41(c)oftheI.R.C.[26U.S.C.41(c)],exceptitdoesnotincluderesearchconducted outside the state of North Dakota.

“Qualifiedresearch”meansqualifiedresearchasdefinedinsection41(d)oftheI.R.C.[26U.S.C.41(d)],exceptitdoesnotincluderesearch conducted or sales outside the state of North Dakota.

Tax credits that exceed the current income taxliability,exceptaslimitedin1(f),mustbecarried back for three years and then carried forwardforuptofifteenyears.Aclaimtocarrybackcreditsmustbefiledwithinthreeyears of the due date or extended due date of the return for the taxable year in which the credit was earned.

If a taxpayer acquires or disposes of the major portion of a trade or business or the major portion of a separate unit of a trade or business in a transaction with another taxpayer,thetaxpayer’squalfiedresearchexpenses and base period must be adjusted in the manner provided by I.R.C. § 41(f)(3).

Corporate taxpayers in a consolidated combined return may apply the credit against the aggregate tax liability on their North Dakota income tax return. NOTE: This provision does not apply to tax credits received or purchased from other taxpayers (see “Line 8” below).


2016 North Dakota Corporate Income Tax Credit Instructions

credit amount within thirty days of the amended return or within thirty days ofthefinaldeterminationmadebytheIRS or the Tax Commissioner. The taxcreditpurchaserisrequiredtofileamended returns reporting the additional tax due or to claim a refund. The Tax Commissioner may audit these returns andassessorissuerefunds,eventhoughother time periods prescribed may have expired for the purchaser.

• Gross proceeds received by the tax credit transferor must be assigned to North Dakota. The amount assigned cannot be reduced by the taxpayer’s income apportioned to North Dakota or any North Dakota net operating loss of the taxpayer.

• Netproceedsreceivedbythetaxcredittransferror should be excluded from North Dakota taxable income on line 11 oftheForm40,ScheduleSA.

• The Tax Commissioner has four years after the date of the credit assignment to audit the returns of the credit transferor and the purchaser to verify the correctness of the amount of the transferred credit and if necessary assess the credit purchaser if additional tax is found due.

Line 9Wage and salary credits for new industry N.D.C.C. § 57-38-30.1A corporation which has been incorporated inNorthDakotaforthefirsttimeafterJanuary1,1969,andwhichisnottheresultofabusinessreorganizationoracquisition,or any out-of-state corporation that has receivedacertificateofauthoritytotransactbusinessinNorthDakotaforthefirsttimeafterJanuary1,1969,maybeentitledtoatax credit. This tax credit is available only fornewenterprisesengagedinassembling,fabricating,manufacturing,mixing,orprocessinganyagricultural,mineral,ormanufactured products or any combination thereof.However,acorporationwhichisreceiving any property tax or income tax exemptionallowedbyN.D.C.C.ch.40-57.1shall not be allowed this credit.

The tax credit is computed as a percentage of the annual gross amount expended by the corporation for salaries and wages within North Dakota. The following percentages apply:

• 1%foreachofthefirstthreetaxableyearsacorporationqualifiesforthetaxcredit;

• ½%foreachofthefourthandfifthtaxableyearsacorporationqualifiesforthe credit.

Attach a worksheet substantiating the date of incorporation or initial authority totransactbusinessinthisstate,annualgross amount of salaries and wages withinthisstate,andtypeofbusinessactivity.

Line 10Payment to a certified nonprofit development corporation creditN.D.C.C. § 57-38-01.17A tax credit is available to a corporation forbuyingmembershipin,payingduesto,orcontributingtoacertifiednonprofitdevelopment corporation as provided in N.D.C.C.§10-33-124.

• “Certifiednonprofitdevelopmentcorporation” means a corporation which meets the following requirements:○ Iscertifiedbythesecretaryofstate;○ Invests a majority of its funds in

primary sector businesses; and○ No part of the income is distributable

toitsmembers,directors,orofficers.

• “Primary sector business” means an individual,corporation,limitedliabilitycompany,partnership,orassociationthat,through a process employing knowledge andlabor,addsvaluetoaproductproduced for resale.

Themaximumtaxcreditallowedis25%ofthetotalinvestment,nottoexceed$2,000.Any unused credit may be carried forward for up to seven tax years.

Attachacompletedcopyofthecertifiednonprofitdevelopmentcorporationinvestment reporting form (see:www.nd.gov/tax/incentives/income.

Line 11Renaissance zone creditsN.D.C.C. ch. 40-63A corporation may qualify for a credit for purchasing,leasing,ormakingimprovementsto real property located in a North Dakota renaissance zone. A renaissance zone is a designated area within a city that is approved by the North Dakota Department of Commerce Division of Community Services. Formoreinformation,contactthelocalzoneauthority,theDepartmentofCommerceDivisionofCommunityServices,ortheOfficeofStateTaxCommissioner.

If a corporation is claiming a tax credit asaresultoftheRenaissanceZoneAct,enter the total amount of credits from the summary part of Schedule RZ and attach theScheduleRZtotheForm40whenfiled.ContacttheOfficeofStateTaxCommissioner for Schedule RZ or access the schedule on our website at www.nd.gov/tax/incentives/renaissance.

A corporation that holds an interest in a passthroughentitythatqualifiesforthiscredit may claim its share of the tax credit in proportion to its interest in the entity. The credit must be claimed in the same taxable year in which the taxable year of the passthrough entity ends. A copy of the statement received from the passthrough entitymustbeattachedtotheForm40alongwith the Schedule RZ.

A corporation may also be eligible to claim exempt income as a result of the Renaissance Zone Act. See Schedule RZ for more information on this exemption.

Line 12Biodiesel or green diesel production creditN.D.C.C. § 57-38-30.6A corporation is allowed an income tax creditequalto10%peryearforfiveyearsof the direct costs incurred to adapt or add equipmenttoretrofitanexistingfacilityorto construct a new facility in North Dakota to produce or blend diesel fuel containing atleast2%biodieselorgreendieselvolume. “Biodiesel” means fuel meeting thespecificationsadoptedbytheAmerican

isequalto45%oftheamountinvestedbythetaxpayerinqualifiedbusinessesduringthe taxable year. The maximum annual creditataxpayermayclaimis$112,500.Themaximumcumulativeamountaqualifiedbusiness may claim for all tax years is limited to$500,000.

For an investment to qualify it must be made on or after the date the business was certifiedbytheNorthDakotaDepartmentof Commerce for the program and must be claimedfirstinthetaxableyearinwhichtheinvestmentisreceivedbythequalifiedbusiness. The investment must be at risk and must remain in the business for at least three years. Investment monies placed in escrow are not at risk until paid out of escrow to the qualifiedbusinessforitsuse.


An angel fund which is subject to North Dakota income tax is not eligible itself for theseedcapitalinvestmenttaxcredit.Rather,the tax credit calculated on an angel fund’s investment must be passed through to the fund’sinvestors,basedontheirrespectiveinterests in the fund.

The amount of the allowable credit not used in the taxable year the investment was made may be carried over to the following four taxable years.

The amount of tax credits allowed for all investmentsmadeinallqualifiedbusinessesislimitedto$3.5millionpercalendaryear.

Acopyofthecompletedqualifiedseed capital business investment reporting form (see: www.nd.gov/tax/incentives/income) must be attached totheForm40foreachyearthecreditisclaimed,orifthecreditisreceivedthroughapassthroughentity,acopyof the statement received from the passthrough entity must be attached.

Line 15Biodiesel or green diesel fuel blending creditN.D.C.C. § 57-38-01.22A fuel supplier (wholesaler) licensed under North Dakota law that blends biodiesel fuel in North Dakota is entitled to an income taxcreditequaltofivecentsforeachgallonblendedduringthetaxableyear.Toqualify,the biodiesel or green diesel fuel must have at leasta5%blend(“B5”).“Biodiesel”meansfuelmeetingthespecificationsadoptedbytheAmerican Society for Testing and Materials. “Green Diesel” means a fuel produced from nonfossilrenewableresources,includingagriculturalorsilviculturalplants,animalfats,residue,andwastegeneratedfromtheproduction,processing,andmarketingofagriculturalproducts,silviculturalproducts,andotherrenewableresources,whichmeetsapplicable American society for testing and materialsspecifications.

Ifthecreditexceedsthetaxliability,theunused portion of the credit may be carried forwardforfivetaxableyears.


Attach a worksheet showing the calculationofthecredit,orifthecredit is received through passthrough entity,attachastatementshowingthepassthrough entity’s name and Federal EmployerIdentificationNumberandthe corporation’s share of the credit.

Line 16Biodiesel or green diesel fuel sales equipment costs creditN.D.C.C. § 57-38-01.23A fuel seller (retailer) that incurs costs to adapt or add equipment to a facility licensed under North Dakota law to enable the facility toselldieselfuelcontainingatleast2%biodiesel fuel by volume is entitled to an income tax credit. “Biodiesel” means fuel meetingthespecificationsadoptedbytheAmerican Society for Testing and Materials.


Society for Testing and Materials. “Green diesel” means a fuel produced from nonfossil renewableresources,includingagriculturalorsilviculturalplants,animalfats,residue,andwastegeneratedfromtheproduction,processing,andmarketingofagriculturalproducts,silviculturalproducts,andotherrenewableresources,whichmeetsapplicableAmerican society for testing and materials specifications.

Thefirsttaxableyearinwhichthecreditmay be claimed is the taxable year in which the facility begins producing or blending biodiesel or green diesel fuel. Eligible costs incurred before the taxable year in which production or blending begins are taken into account in calculating the credit.

The credit may not exceed the corporation’s taxliabilityinanyyear,butanyunusedportion of a taxable year’s credit may be carriedforwardforuptofivetaxableyears.The maximum cumulative credit allowed to a taxpayer for all taxable years is limited to $250,000.

Attach a worksheet showing the calculation of the credit.

Line 13Soybean and canola crushing equipment costs creditN.D.C.C. § 57-38-30.6Effective for tax years beginning after December31,2008,thebiodieselfuelproduction credit (Line 12) was amended to include direct costs incurred to adapt or add equipmenttoretrofitanexistingfacilityorto construct a new facility for the purpose of producing crushed soybeans or canola. Refer to line 12 for further instructions on claiming this credit.

Line 14Seed capital business investment tax creditN.D.C.C. ch. 57-38.5Ataxcreditisavailabletoacorporation,a limited liability company treated like a corporation or an angel fund for its investmentinaqualifiedbusinesscertifiedto participate in the seed capital investment program. The amount of the allowable credit


• The tax credit is allowed in the tax year in which the instrument transferring title to the real property is recorded with the recorder.

Thetaxcreditmustbeclaimedfirstinthetaxable year in which the investment is receivedbythequalifiedbusiness.Thecreditcannot exceed the taxpayer’s tax liability and any tax credit not used in the taxable year the investment was made may be carried over to thefollowing10taxableyears.Ataxpayerisallowednomorethan$250,000increditsforall tax years under this program.


A copy of the completed ag commodity processing facility investment reporting form (see www.nd.gov/tax/incentives/income) must be attached totheForm40foreachyearthetaxcreditisclaimed,orifthecreditisfromapassthroughentity,acopyof the statement received from the passthrough entity must be attached.

Line 18Endowment fund contribution creditN.D.C.C. § 57-38-01.21A tax credit is available for a corporation that makesacharitablecontributiontoaqualifiedendowment fund.

Qualified endowment fund.Aqualifiedendowmentfundsmeansapermanent,irrevocable fund that meets all of the following: 1. Itisheldbyaqualifiednonprofit

organization (defined below) or by a bank or trust company on behalf of a qualifiednonprofitorganization.

2. Itiscomprisedofcash,securities,mutualfunds,orotherinvestmentassets.

3. Itisestablishedforaspecificreligious,educational,orothercharitablepurpose.

“Green Diesel” means a fuel produced from nonfossilrenewableresources,includingagriculturalorsilviculturalplants,animalfats,residue,andwastegeneratedfromtheproduction,processing,andmarketingofagriculturalproducts,silviculturalproducts,andotherrenewableresources,whichmeetsapplicable American society for testing and materialsspecifications.

Thecreditisequalto10%oftheseller’sdirect costs incurred to adapt or add the equipment. The credit is allowed in each of fivetaxableyears,beginningwiththetaxableyear in which the seller begins selling the eligible biodiesel or green diesel fuel. The portion of the credit not used in each year maybecarriedforwardforfivetaxableyears.Asellermayclaimnomorethan$50,000incredits for all taxable years. Eligible costs incurred before the taxable year in which sales begin may be included in the calculation of the credit.


Attach a worksheet showing the calculationofthecredit,orifthecreditis received through a passthrough entity,attachastatementshowingthepassthrough entity’s name and Federal EmployerIdentificationNumberandthe corporation’s share of the credit.

Line 17Agricultural commodity processing facility investment credit N.D.C.C. ch. 57-38.6A tax credit is available to a corporation or a limited liability company treated like a corporationforitsinvestmentinaqualifiedbusinesscertifiedorrecertifiedtoparticipatein the agricultural commodity processing facility investment tax credit program.

An agricultural commodity processing facility means “a facility that through processing involving the employment of

knowledge and labor adds value to an agricultural commodity capable of being raised in this state” and includes a livestock feeding,handling,milking,orholdingoperation that uses as part of its operation a by-product produced at a biofuels production facility. A biofuels production facility is a North Dakota business that produces diesel fuelcontainingatleast5%biodieselorgreendiesel,producescorn-basedorcellulose-basedethanol,orcrushessoybeansorcanola.

Theallowablecreditisequalto30%ofthetotalamountinvestedinallqualifiedagricultural commodity processing businesses during the taxable year. For an investment to qualifyforthecredit,theprocessingfacilitymusthavebeenpreviouslycertifiedforeligibility by the North Dakota Department of Commerce. The maximum allowable credit that may be used in any taxable year is$50,000andtheinvestmentmustbemadeon or after the effective date in which the businessbecamecertified.Theinvestmentmust be at risk and must remain in the business for at least three years. Investment monies placed in escrow are not at risk until paidoutofescrowtothequalifiedbusinessfor its use.

Aqualifiedinvestmentmayincludeatransferof a fee simple interest in real property. In thatcase,thefollowingconditionsapply:

• Personalpropertythatbecomesafixtureto the real property after the transfer of therealpropertytothequalifiedbusinessisnotaqualifiedinvestment.

• The value of the contribution may not exceed the appraised value as established byalicensedorcertifiedappraiser.

• The value of the contribution must be approved by the governing body of thequalifiedbusiness,subjecttothestandards for valuing consideration for shares under North Dakota corporation law.

• Thequalifiedbusinessisrequiredtoprovide to the Tax Commissioner a copy oftheappraisedvaluation,acopyofthegoverning body’s resolution approving thevalueofthecontribution,andacopyof the statement of full consideration within thirty days after the instrument transferring title to the real property is recorded with the recorder.

Ifthecontributionisrecovered,thetaxcredit must be added to tax due in the year recoveryoccurs.Contactourofficeforinstructions on how to report the recovery of the contribution.

Attach a copy of the front and back of thecancelledcheck,orareceiptfromthequalifiednonprofitorganizationacknowledgingitsI.R.C.§501(c)(1)status and the date and amount of the eligible contribution. If the credit is receivedthroughapassthroughentity,attach a copy of the statement received from the passthrough entity.

Line 19Microbusiness investment and employment creditN.D.C.C. § 57-38-01.27A corporation is entitled to a tax credit for new investment and new employment in a certifiedmicrobusinessinNorthDakota.

A “microbusiness” means a business that employsnomorethan5employeesinacommunitywithapopulationofatleast100butfewerthan2,000peopleandhasoneormore of the following:

• An active community economic development organization.

• An ongoing relationship with a regional or urban economic development organization.

• Anexistingcitysalestax,allorpartofthe revenue from which is dedicated to economic development.

Tobecertifiedasamicrobusiness,thetaxpayer must:

• be actively engaged in the daily operation of the microbusiness;

• purchase eligible property or hire eligible employees,resultinginthecreationofnew income or jobs;

• not directly compete with any established businesslocatedwithin15milesofthetaxpayer’s business;

• belocatedatleast15milesfromacitywithapopulationof2,000ormorepeople; and

• not close or reduce its operations in one area of North Dakota and relocate substantially the same business operation to another area in North Dakota.

Thecreditisequalto20%innewinvestmentand new employment of the microbusiness during the tax year.

• “New employment” means the amount by which the total compensation paid during the taxable year to North Dakota resident employees exceeds the total compensation paid to North Dakota resident employees in the taxable year before the application. For the purposes of calculating the increase in newemployment,theemployermaynot include merit-based or equity-basedsalaryincreases,costoflivingadjustments,oranyotherincreaseincompensation not directly related to the hiring of new employees during the taxable year.

• “New investment” means the increase in the applicant’s purchases of microbusiness buildings and depreciable personalpropertylocatedinthisstate,not including vehicles required to be registered for operation on the roads andhighwaysofthisstate,duringthetaxable year as compared with the previous taxable year. If the buildings or depreciable personal property is leased,theamountofnewinvestmentis the increase in average net annual rents multiplied by the number of years of the lease for which the taxpayer is bound,notexceedingtenyears.Forthe purposes of calculating the increase innewinvestment,theemployermaynot include any increases in rents for property leased before the current taxable year. Only rents for leases completed in the current taxable year may be included.

Enteronline19a,thetotalamountoftheincreaseinqualifiedpurchasesorrentsofeligible property located in North Dakota.

Enteronline19b,thetotalamountoftheincreaseinqualifiedcompensationpaidtoNorth Dakota resident employees.

Lines 19a and 19b are required to be reported in order to claim this credit.

4. Itmayexpendonlytheincomegeneratedby,ortheincreaseinvalueof,theassetscontributedtoit.

Qualified nonprofit organization. A qualifiednonprofitorganizationmeans: 1. An organization incorporated or

established in North Dakota and has a physical presence in North

Dakota; and is a tax-exempt organization under

I.R.C.§501(c)thatqualifiesasacharitable organization under

I.R.C.§170;or 2. An organization incorporated or

established in a state bordering North Dakota that:

is a tax-exempt organization under I.R.C.§501(c)thatqualifiesasacharitable organization under

I.R.C.§170;and supportsorbenefitsahospital,

nursinghome,ormedicalcenter,oranycombinationofthese,thatislocated outside North Dakota but withinfivemilesofaNorthDakotacitywithapopulationof5,000ormore that does not have a hospital.

Thecreditisequalto40%ofthecontributionand the maximum allowable credit for a tax yearis$10,000. North Dakota taxable income must be increased by the amount of the contribution upon which the credit is computed to the extent the contribution reduced federal taxableincome.Ifclaimingthecredit,enterthe amount of the contribution related to thecreditclaimedonline5oftheForm40,Schedule SA.


The credit may not exceed the taxpayer’s income tax liability. Any unused credit may be carried forward for three taxable years.


Nomorethan$10,000oftaxcreditsareallowed for all tax years. The credit may not exceed the taxpayer’s liability and any unused credits may be carried forward for fivetaxableyears.


Acopyofthecertificationofthemicrobusiness issued by the North Dakota Department of Commerce must be submitted for each year the credit is claimed. If the credit is received throughapassthroughentity,attachacopy of the statement received from the passthrough entity.

Attach a supporting schedule showing the calculation of the credit.

Formoreinformationonthecertificationprocessortoapplyforcertification,contactthe Director of the North Dakota Department of Commerce Division of Economic DevelopmentandFinanceat701.328.5300oraccess their website at www.business.nd.gov. Certificationapplicationsmaybeaccessedonthe Department of Commerce’s website.

Line 20Internship employment creditN.D.C.C. § 57-38-01.24A corporation who is an employer in this statemaytakeataxcreditforqualifiedcompensation paid to an intern employed by the taxpayer in this state.

For the internship to qualify for the credit:

• The intern must be an enrolled student in an institution of higher education or vocationaltechnicaleducationprogram,seekingadegreeorcertificationinamajorfieldofstudycloselyrelatedtotheinternship work experience;

• The internship must be taken for academic credit or count toward the completion of the vocational technical education program;

• The intern must be supervised and evaluated by the taxpayer; and

• The internship must be located in North Dakota.

Thecreditis10%ofthestipendorsalarypaid to the intern employed by the taxpayer and the credit cannot be claimed for more thanfiveinternsemployedatthesametime.Ataxpayermaynotclaimmorethan$3,000in credits for all tax years combined.


Attach a schedule listing the names oftheemployees,theirsocialsecuritynumber and wages paid. If the credit is receivedthroughapassthroughentity,attach a copy of the statement received from the passthrough entity.

Line 21Angel fund investment creditN.D.C.C. § 57-38-01.26A corporation is entitled to a tax credit for aninvestmentmadetoaqualifiedangelfundwhich is incorporated in North Dakota.

Thecreditisequalto45%oftheinvestmentand must be claimed in the year in which the investment was received by the angel fund. Tobeeligibleforthecredit,theinvestmentmust be at risk in the fund (not in escrow) for at least three years.

An angel fund must: a. Beapartnership,limitedpartnership,

corporation,limitedliabilitycompany,limitedliabilitypartnership,trust,orestateorganizedonafor-profitbasiswhich is headquartered in North Dakota.

b. Be organized for the purpose of investing in a portfolio of at least three early-stage and mid-stage private,nonpubliclytradedenterpriseswith strong growth potential.

1) An“early-stage”entityisdefinedas having annual revenues up to $2million,anda“mid-stage”entityisdefinedashavingannualrevenuesfrom$2millionto$10million.

2) Investments in real estate or real estate holding companies are not eligibleinvestmentsbycertifiedangel funds.

c. Consist of at least six accredited investorsasdefinedbySecuritiesandExchangeCommissionRegulationD,rule501.

d. Nothavemorethan25%ofitscapitalized investment assets owned by an individual investor.

e. Haveatleast$500,000incommitments from accredited investors and that capital must be subject to call to be invested over anunspecifiednumberofyearstobuild a portfolio of investments in enterprises.

f. Be member-managed and the investor members or a designated board on which enterprises are worthy of investments.

g. Becertifiedasanangelfundmeetingthese requirements by the North Dakota Department of Commerce.

h. Be in compliance with the securities laws of North Dakota.

i. File an investment reporting formwiththeOfficeofStateTaxCommissionerwithin30daysafteraninvestment is made. A copy must also be provided to the investor. The form mustinclude:(1)theinvestor’sname,address,andsocialsecuritynumberorfederalemployeridentificationnumber,(2)theinvestmentamount,and (3) the investment date.

j. FileareportwiththeOfficeofStateTaxCommissionerwithin30daysafter the end of the calendar year showing the name and principal place of business in which the angel fund invested its funds.

Angel fund investors may be actively involved in the enterprises in which the angelfundinvests,buttheangelfundmaynot invest in any enterprise if any one angelfundinvestorownsmorethan49%of the ownership interests in the enterprise.

Page 8 2016 North Dakota Corporate Income Tax Credit Instructions

Investors in one angel fund may not receive morethan$5milliondollarsinaggregatecreditsduringthelifeoftheangelfund,butthis does not limit additional investments in that angel fund.

The aggregate annual credit which a taxpayer mayclaimcannotexceed$45,000.Anyunused credit may be carried forward to each of the seven succeeding taxable years. ForinvestmentsmadeonorafterJanuary1,2013,thereisa$500,000lifetimelimitofcredit per taxpayer.

A taxpayer claiming this credit may not claim any credit otherwise available to the taxpayer as a result of an investment made by the angel fund in a business qualifying for the seed capital investment credit or the agricultural commodity processing facility investment credit.

Foreachcontribution,attachacopyofthecertificationnotificationissuedby the North Dakota Department of Commerce. A receipt from the angel fund or a copy of the cancelled check (front and back) must also be submitted.

If a corporation is an owner of a passthrough entity and received a North Dakota Schedule K-1 showing its share of an angel fund investment credit from a partnership or otherpassthroughentity,alsoincludeonthisline the total credit shown on the schedule.

Theabilitytosell,assign,ortransferthecreditwasonlyavailableduringthe2011and2012taxyears.

Line 22Angel fund investment credit purchased and carried forwardN.D.C.C. § 57-38-01.26Enter on this line the amount of tax credits purchasedfromanothertaxpayerin2011and2012andcarriedforward.Enteronlythetotalthat,whencombinedwithothercreditsclaimed,willnotexceedthecorporation’stotal tax liability. Any unused credits may be carriedforwarduptosevenyears,butonlyto the extent of the transferor’s unused seven year carryover period. Form CTS should be attached to the return to substantiate the purchased credit and the amount remaining to be used.


Line 23Workforce recruitment credit N.D.C.C. § 57-38-01.25A corporation that is an employer in North Dakota is entitled to a credit for costs incurred during the tax year to recruit and hireemployeesforhard-to-fillemploymentpositions for which the annual salary for the position meets or exceeds the state average wage.

• “Hard-to-fillemploymentposition”means a job that requires the employer to use extraordinary recruitment methods and for which the employer’s recruitment effortsforthespecificpositionhavebeenunsuccessful for six consecutive calendar months.

• “Stateaveragewage”means125%ofthestate average wage published annually by Job Service North Dakota and which is in effect at the time the employee is hired.

• “Extraordinaryrecruitmentmethods”means using all of the following:○ Apersonwiththeexclusivebusiness

purpose of recruiting employees and for which a fee is charged by the recruiter.

○ Anadvertisementinaprofessionaltradejournal,magazine,orotherpublication,themainemphasisofwhich is providing information to a particular trade or profession.

○ Awebsite,thesolepurposeofwhichis to recruit employees and for which a fee is charged by the website.

○ Paymentofasigningbonus,movingexpenses,ornontypicalfringebenefits.

Acreditmaybeclaimedfor5%ofthesalarypaidtoanemployeeinaqualifiedhard-to-fillpositionforthefirst12consecutivemonthsofthat employee’s employment in that position. Thecreditmaybeclaimedinthefirsttaxyearbeginningaftertheemployeefillingthehard-to-fillpositionhascompletedtheirfirst12 consecutive months of employment in the hard-to-fillposition.

Alsoenteronline23,thenumberofqualifiedemployees hired to claim the credit. Any unused credit may be carried forward for four succeeding taxable years.


Attach a schedule listing the names oftheemployees,theirsocialsecuritynumbers,wagespaidandemploymentstart date.

Line 24Wages paid to a mobilized military employee creditN.D.C.C. § 57-38-01.31A tax credit is available to an employer of an employee in the National Guard or a reserve component of the U.S. armed forces who is mobilized for federal active duty under Title10oftheU.S.Code.

Thecreditisequalto25%ofthelesserof:

• theamountofcompensationtheemployer continues to pay during the period of mobilization; or

• thereductionincompensation.

Reductionincompensationisdefinedasthe excess of the amount of compensation the employer would have paid had there been no mobilization over the total military compensation paid because of the mobilization. In determining the amount of compensation the employer would have paid,theamountmayincludetheemployer’sportion of any voluntary or matching contributionspaid,orthatwouldhavebeenpaid,intoadefinedcontributionplan.Indeterminingthereductionincompensation,the civilian and military compensation must be compared for the same time period. If the military compensation is equal to or more thantheciviliancompensation,thereductionin compensation is zero and no credit is allowed.

The maximum credit allowed per eligible employeeis$1,000,andthecreditmaynotexceed the taxpayer’s income tax liability. Any unused credit may be carried foward for fivetaxableyears.



Toclaimthiscredit,attachacopyofthecompletedScheduleME,CreditforWages Paid to Mobilized Employee (see www.nd.gov/tax/incentives/income)totheForm40.Ifthecreditisreceivedthroughapassthroughentity,acopy of the statement received from the passthrough entity must be attached.

Line 25Housing incentive fund credit (Effective through 2016)N.D.C.C. § 57-38-01.32

A tax credit is available for contributing to the housing incentive fund administered by the North Dakota Housing Finance Agency. Thecreditisequalto100%oftheamountcontributed to the fund. Any unused portion of the credit may be carried forward for up to ten years.

If you made a qualifying contribution to the housing incentive fund administered by theNorthDakotaHousingFinanceAgency,enter on this line the total credit shown on thecreditcertificateissuedtoyou.Ifyoureceived a North Dakota Schedule K-1 showing your share of a housing incentive fundcreditfromapassthroughentity,includeon this line the total credit shown on the schedule.

The aggregate amount of tax credits allowed to all eligible contributors is limited to thirty million dollars. The credit is set to expire December31,2016.

Attachacopyofthecertificationofthe contribution to the fund issued by the North Dakota Housing Finance Agency for each year the credit is claimed. If the credit is received throughapassthroughentity,attachacopy of the statement received from the passthrough entity.

Adjustment to taxable income - Your North Dakota taxable income must be increased by the amount of the contribution to the fund to the extent it reduced your federal taxable income.SeetheinstructionstoForm40,ScheduleSA,line6.

Line 26Automation manufacturing equipment purchase credit N.D.C.C. § 57-38-01.33

A tax credit is available to a corporation for purchases of equipment for the purpose of automating a manufacturing process. To qualifyforthecredit,thecorporationmustbecertifiedasaprimarysectorbusinessandtimelyfileanapplicationwiththeNorthDakota Department of Commerce. Visit the Department of Commerce website www.commerce.nd.gov/ for application information including deadlines and includable costs. The credit includes the following provisions:

• Thecreditisfirstallowedinthetaxyearin which the taxpayer takes title to the machinery and equipment. For purposes ofthiscredit,apurchaseincludesequipment acquired with a capital lease.

• Thecreditisequalto20%ofthecostof qualifying new or used equipment purchased,asapprovedbytheDepartment of Commerce.

• Ifthecreditexceedsthetaxliability,theexcessmaybecarriedoverforuptofiveyears.

The total credit allowed for all qualifying purchases by all taxpayers is limited to $500,000forcalendaryear2016.Ifthestatewidelimitforayearisexceeded,credits are allowed to each taxpayer in proportion of all the approved credits for that year. If the statewide limit for any yearisnotmet,theamountofunusedcredits are rolled over and added to the available statewide credits for the following year. (The amount of credit allowed for calendar year 2015 was $1,021,043 less than the 2015 limit, so that amount is added to the preliminary 2016 limit of $500,000, resulting in a total limit of $1,521,043.)

• Corporatetaxpayersinaconsolidatedcombined return may apply the credit against the aggregage tax liability on their North Dakota income tax return.

• ThecreditissettoexpireDecember31,2017.


TheOfficeofStateTaxCommissionerissuesafinalnotificationofcredittothetaxpayer.Toclaimthiscredit,attach to the return a copy of that letter indicating the amount of credit allowed to the taxpayer.

Line 27Rural leadership North Dakota program contributions creditN.D.C.C. § 57-38-01.34

A tax credit is available to a corporation for contributions to the Rural Leadership North Dakota Program conducted by the NDSU Extension Service. The credit is equalto50%ofthetotalcontributionsmadeduring the tax year. Contributions may be designatedforaspecificindividual.Anyunused credit may not be carried over to subsequent tax years.

Enclose a copy of a receipt for each qualifying contribution or a cancelled check (front and back)withForm40.


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pany,upto

$100,000ofcreditm

aybe

trans

ferr

ed to

ano

ther

taxp

ayer

Cre

dit m

ay b

e us

ed to

redu

ce

the

tax

of a

n af

filia

te in

a N

D

cons

olid

ated

retu

rn

3-

year

car

ryba

ck

15-yearcarryforward

(afte

r firs

t bei

ng

carr

ied

back

)

Ifeligible,upto

$100,000maybe

trans

ferr

ed to

ano

ther

ta

xpay

er.

Rur

al le

ader

ship

ND

pro

gram

co

ntrib

utio

ns c

redi

t 2013andafter

50%ofcontributions

N

one

Seed

cap

ital b

usin

ess i

nves

tmen

t cr

edit

2005andafter

(see

Not

es)

45%ofcashinvestment

$112,500

Pr

ogra

m li

mit

per

busi

ness

:Creditlimitedtofirst$500,000

of in

vest

men

ts re

ceiv

ed fo

r all

year

s

Prog

ram

lim

it (a

ll in

vest

ors)

: $3.5millionofcreditsperyear

4-yearcarryforward

Wag

e an

d sa

lary

cre

dit

(“

new

indu

stry

cre

dit”

) 1969andafter

1%

ofw

agespaideach

year

for f

irst 3

tax

year

s 0.5%

ofw

agespaideach

yearfor4thand5thtax

year

s

N

one

Workforcerecruitmentcredit

2007andafter

5%ofw

agespaidinfirst

12 m

onth

s of e

mpl

oym

ent

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llow

ed in

yea

r afte

r the

yea

r in

whi

ch 1

2th

mon

th o

f em

ploy

men

t fal

ls

4-yearcarryforward

Not

es Ifmorethanonecreditappliesinagivenyear,applythecreditsintheorderthatism

ostadvantageous.Generally,thism

eans

app

lyin

g th

e cr

edits

in th

e fo

llow

ing

orde

r: (1

) Cre

dits

with

no

carr

ybac

k or

car

ryfo

rwar

d fe

atur

e. (2

) Cre

dits

with

a c

arry

back

feat

ure.

(3) C

redi

ts w

ith a

car

ryfo

rwar

d fe

atur

e.

Ifacreditislimitedbasedonapercentageofthetax,applyth

e pe

rcen

tage

to th

e ta

x be

fore

any

cre

dits

are

subt

ract

ed.

Th

e ag

ricul

tura

l com

mod

ity p

roce

ssin

g fa

cilit

y in

vest

men

t cre

dit w

ascreatedin2001,butitwasn

ot a

vaila

ble

to a

C c

orpo

rationuntil2005.

Theseedcapitalbusinessinvestmentcreditw

ascreatedin1993,butitwasnotavailabletoaCcorporationuntil2005.

CallQuestions:701.328.1249FormsRequests:701.328.1243

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YoumayobtainacopyoftheNorthDakotaTaxpayerBillofRightsbycontactingtheOfficeofStateTax

Commissionerorvisitingourwebsiteatwww.nd.gov/tax

Come in to see usStopintoseeusinpersonatourofficeinBismarck.Youwillfindusinthe—

Corporate Income Tax Section StateCapitol,16thFloor Monday through Friday 8:00a.m.to5:00p.m.

Write OfficeofStateTaxCommissioner 600E.BoulevardAve.Dept.127 Bismarck,ND58505-0599

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