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North Dakota Office of State Tax Commissioner

2003 Schedule RZ instructions

Specific line

You are eligible for the credit for your entire

tax year if all of the following apply:

instructions

Instructions for

•

You were eligible for the credit as of the

Part 3

Line 1

beginning of your tax year.

Enter the project number assigned to your

For information on when the credit

Single-family

zone project by the local zone authority.

Five-year

period begins and ends, see

The project number is shown on the final

credit period

on page 7.

residence tax

zone project approval letter issued by the

•

You used the zone project property in

North Dakota Commerce Department’s

credit

your business for your entire tax year.

Division of Community Services. If you

•

The 60-month credit period did not

do not have a copy of the final zone

expire during your tax year. This

project approval letter, contact your local

condition is satisfied if the 60th month

General instructions

zone authority.

of the credit period falls in the last

Attach a copy of the final zone project

month of your tax year or later.

Eligibility

approval letter to your North Dakota

An income tax credit is available to an

Partial-year eligibility. You are eligible

tax return.

individual for purchasing or making a

for the credit for only part of your tax year

qualified rehabilitation to a single-family

Line 2

if any of the following apply:

residence in a zone, provided the purchase

•

Enter the name of the renaissance zone city

You became eligible for the credit

or rehabilitation is approved as a zone

where your zone project property is

during the tax year in a month other

project. The residence must be the

located. Note: The business purchase or

than the first month of the tax year.

individual’s primary place of residence. For

expansion tax credit is available only if

For information on when the credit

this purpose, a purchase includes the

the qualifying zone project is located in a

Five-year

period begins and ends, see

construction of a new single-family

renaissance zone city having a population

credit period

on page 7.

residence.

of 2,500 or less.

•

You sold the zone project property or

Single-family residence. A single-family

permanently withdrew the zone project

Line 3

residence means a single-family detached

property from business use during the

Enter the street address of your project

home, a single unit in a duplex or

tax year.

property. Include the suite or unit number,

condominium, or a townhouse.

•

The 60-month credit period expired

if applicable. Do not enter a post office

during the tax year, and the 60th month

box number.

Primary place of residence. A primary

is not the last month of the tax year.

place of residence is a physical place of

Line 4

abode that is the individual’s legal

If any of the above conditions apply, enter

If you qualified for more than one zone

residence (or domicile). An individual’s

on line 9 the number of months you are

project at the same street address, check

legal residence is the individual’s true,

eligible for the credit during the tax year.

the “Yes” box and write the project

fixed and permanent home. It is the place

The number of months you are eligible for

numbers for all of them on the line

to which an individual intends to return

the credit for the tax year is the smaller of

provided on the schedule.

whenever absent from it. While an

the following:

individual may have more than one

•

Number of months in the 60-month

Line 8

physical place of abode, only one of them

exemption period available to you as of

Enter the five-year credit period start date

may be the individual’s legal residence.

the beginning of the tax year.

for your zone project. This date is shown

Legal residence is based on each

•

Number of months you owned the zone

on the final zone project approval letter

individual’s facts and circumstances as

issued by the North Dakota Commerce

project property during the tax year. If

well as the individual’s intent.

Department’s Division of Community

you acquired the zone project property

Qualified rehabilitation. A qualified

Services. This date establishes the

during the tax year, include the month

rehabilitation means the repair or

beginning of the five-year credit period

of acquisition. If you disposed of the

remodeling of the residence at a cost equal

that applies to your zone project property.

zone project property during the tax

to or more than 20 percent of the

This date does not change even if the

year, exclude the month of disposition.

residence’s current true and full value as

property is transferred to another taxpayer.

•

Number of months the zone project

used for property tax purposes.

Five-year credit period

See

on page 7

property was used in your business

for more information.

during the tax year. Include the month

The credit is equal to $10,000 per year over

in which the zone project property was

Five-year

a five-year credit period—see

Line 9

first put into use in the business, and

credit period

on page 9. The credit is

Credit period limitation

exclude the month in which the zone

allowed on both Form ND-1 and

Full-year eligibility. If you are eligible for

project was permanently removed from

Form ND-2. If the allowable credit for any

the credit for your entire tax year, enter “12”

use in the business.

tax year exceeds the individual’s tax liability

on line 9 and go to line 10.

Log - Schedule Rz Instructions Renaissance Zone Act Exemptions And Tax Credits - North Dakota Office Of State Tax Commissioner - 2003 Page 10

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