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North Dakota Office of State Tax Commissioner

2003 Schedule RZ instructions

•

Regular corporation

—If you are a

Is your Schedule RZ complete?

regular corporation filing Form 40, enter

Have you ...

the tax credit amount on page 4,

Schedule TC, line 10.

Included all 3 pages of Schedule RZ?

•

S corporation

—If you are an S

Attached a copy of the final zone project approval letter, if applicable?

corporation filing Form 60, do not enter

Attached a copy of the Renaissance Zone Pass-Through Member Notice,

the tax credit on Form 60. You must

if applicable?

notify each shareholder about the pass-

Attached the statements showing how you calculated your credit

Pass-

through of the tax credit—see

and any carryforward for Part 4 or Part 5, if applicable ?

through entity

on page 2 for details.

Attached the Renaissance Fund Organization Investment Reporting

•

Financial institution

Form for Part 5, if applicable?

—If you are a

financial institution filing Form 35, enter

the tax credit amount on page 5,

Factor in general

of an improvement to an existing

Schedule TC, line 3 or line 4, whichever

business that is approved as a zone

The zone apportionment factor is a fraction

applies.

project, personal property that is

composed of the following:

•

Partnership

—If you are a partnership

purchased for purposes of the

•

Numerator

filing Form 58, do not enter the tax

improvement and becomes an integral

The numerator includes the average

credit on Form 58. You must notify

part of the business real property is

value of the owned and rented

each partner about the pass-through of

excluded from the zone factor until

properties that are used at your

Pass-through

the tax credit—see

completion of the improvement

business’s zone project location.

entity

on page 2 for details.

project.

•

Denominator

•

Fiduciary

—If you are a fiduciary filing

Property required to be included in the

The denominator includes the average

Form 38, include the tax credit amount

zone apportionment factor must remain in

value of all owned and rented properties

on page 1, line 12.

the zone apportionment factor until its

used in your business in North Dakota.

permanent withdrawal is established by

Determining average value of property.

an identifiable event, such as its sale or

Instructions for

See the specific line instructions for lines

the lapse of an extended period of time

10a through 10g later in this section for

(normally five years) during which the

calculating the

how to determine the average value of the

property is held for sale.

property.

zone

Property used at zone project location.

Property includable in zone

Property is included in the numerator of

apportionment

apportionment factor. The zone

the zone apportionment factor if it is

apportionment factor must include all

physically located and used at the zone

factor

North Dakota real and tangible personal

project location. Property in transit on the

property owned and rented that is used in

last day of the tax year and mobile or

(for Part 1, lines 10a-10h)

the regular course of the taxpayer’s

movable property is considered to be

business during the tax period.

located and used at the zone project

Real and tangible personal property

location in the following situations:

General instructions

includes land, buildings, machinery, stocks

•

The property is in transit between

of goods, equipment, and other tangible

These instructions explain how to calculate

separate physical locations of the same

property. It does not include coin and

the zone apportionment factor for Part 1,

business and the property’s destination

currency.

lines 10a through 10h. You must calculate

is the zone project location.

Property used in the business. Property

the zone apportionment factor if less than

•

The property is in transit between a

is used in your business if it is actually

100 percent of the North Dakota real

buyer and seller and, based on the

used, available for use, or capable of being

property held and used in your business is

taxpayer’s regular accounting

used in the regular course of the business

located at your zone project location. For

practices, is included in the

during the tax period. This includes the

this purpose, real property includes

denominator of the zone factor, and the

following:

leaseholds, i.e., real property that you are

property’s final destination is the zone

•

leasing and using in your business.

Inventoriable goods in process.

project location.

•

Property held as reserves or standby

•

If 100 percent of the North Dakota real

The mobile or movable property, such

property held and used in your business is

facilities, or property held as a reserve

as construction equipment, trucks, or

located at your zone project location, skip

source of materials.

leased electronic equipment, is

lines 10a through 10g, enter 1.000000 on

•

assigned to the zone project location.

Property under construction if actually

line 10h, and go to line 11. If this applies,

This includes an automobile assigned

used in the regular course of the

you may ignore the remainder of these

to a traveling employee who is

business, but only to the extent of the

instructions.

assigned to the zone project location.

value attributable to its use. In the case

Log - Schedule Rz Instructions Renaissance Zone Act Exemptions And Tax Credits - North Dakota Office Of State Tax Commissioner - 2003 Page 15

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