Schedule Rz - Booklet - Renaissance Zone Act Exemptions And Tax Credits

North Dakota Ofﬁ ce of State Tax Commissioner

2011 Schedule RZ instructions

Speciﬁ c line

Line 7

This credit may be claimed on the

Enter the historic property preservation or

following forms—

instructions

renovation tax credit from North Dakota

In the case

Passthrough entity

Note: Passthrough entity owner

Schedule K-1. See

of a(n):

Form

on page 1 for more information. Attach a

If the taxpayer owns an interest in a

Individual

ND-1

copy of the North Dakota Schedule K-1.

passthrough entity, and the taxpayer is

Estate or trust

completing Schedule RZ only to claim

C corporation

Line 10

the taxpayer’s share of the historic

Financial institution

Current year credit

property preservation or renovation tax

Enter on this line the portion of the total

If the taxpayer is a passthrough entity, see

credit passed through to the taxpayer by

available tax credit (on line 9) that is being

Passthrough entity

on page 1.

the entity, enter the taxpayer’s name and

used to reduce the 2011 tax liability. If

applicable identiﬁ cation number at the top

there is a tax credit carryforward from a

When to claim credit

of page 3 of Schedule RZ. Enter the credit

prior tax year (on line 8), use the credits in

amount from North Dakota Schedule K-1

The ﬁ rst year this tax credit must be

the order that is most beneﬁ cial.

on line 7 of Part 4. Do not make an entry

claimed is the tax year in which the

on lines 1 through 6c. Complete lines 8

If the taxpayer is a passthrough entity,

investment was made. The date of the

through 11. Complete Part 7 as instructed.

enter the total amount from line 9, and

investment is shown on the investment

Attach Schedule RZ and a copy of North

skip line 11. Except for passthrough

reporting form. If the entire credit cannot

Dakota Schedule K-1 to the return. See

entities, attach a statement showing

be used in the tax year in which it is ﬁ rst

Passthrough entity owner

on page 2 for

how the amount entered on this line was

claimed, the unused credit may be carried

more information.

determined.

over for up to ﬁ ve tax years.

Line 1

Line 11

Disqualifying redemption

Carryforward to 2012

Enter the project number assigned to the

The tax credit is disallowed and must be

zone project by the local zone authority, as

If the total available tax credit on line 9

repaid to the state by a taxpayer if the

shown on the ﬁ nal zone project approval

exceeds the amount on line 10, enter on

taxpayer originally made the investment

letter. If the taxpayer does not have a copy

this line the portion of the excess that is

and the taxpayer redeems the investment

of the ﬁ nal zone project approval letter,

eligible for carryover to the 2012 tax year.

within ten years of making it. For this

contact the local zone authority to obtain

Except for passthrough entities, attach

purpose, “redeem” means that the taxpayer

one.

a statement showing how the amount

initiates a transaction with the RFO in

Attach a copy of the ﬁ nal zone project

entered on this line was determined.

which the taxpayer receives cash or

approval letter to the North Dakota

property in return for the stock or other

return.

investment interest. A disqualifying

Instructions for

redemption does not occur if a taxpayer

Line 2

transfers part or all of an investment

Part 5

Enter the name of the renaissance zone city

interest to a third party, nor does it occur if

where the zone project is located.

the RFO initiates the transaction.

Renaissance

If there is a disqualifying redemption, the

Line 3

RFO must complete another North Dakota

fund

Enter the street address of the project

Renaissance Fund Organization Investment

property. Include the apartment, suite, or

organization

Reporting Form and submit it to the Ofﬁ ce

other unit number, if applicable. Do not

of State Tax Commissioner. A copy of

enter a post ofﬁ ce box number.

investment tax

the completed form must be given to the

taxpayer.

Line 4

credit

If the taxpayer qualiﬁ ed for more than one

Repayment of disallowed credit. A credit

zone project at the same street address,

disallowed as the result of a disqualifying

check the “Yes” box and write the project

redemption must be repaid to the state.

General instructions

numbers for all of them on the line

The repayment must be made with the

provided on the schedule.

North Dakota tax return ﬁ led for the tax

Who should complete

year in which the redemption occurred.

Complete Part 5 if the taxpayer made a

Note: If the taxpayer has more than

No penalty or interest applies to a timely

qualifying investment in a renaissance

one zone project for which the taxpayer

repayment of the disallowed credit. Do not

fund organization (RFO), as evidenced

qualiﬁ es for the historic property

ﬁ le an amended return or use Schedule RZ

preservation or renovation tax credit,

by the North Dakota Renaissance Fund

to report the redemption.

Organization Investment Reporting Form

complete a separate Schedule RZ

that was issued to the taxpayer by the RFO.

for each project. Add the separately

calculated amounts and enter the total in

Part 7, line 4, of one of the schedules.

Schedule Rz - Booklet - Renaissance Zone Act Exemptions And Tax Credits - 2011 Page 11

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