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

North Dakota Ofﬁ ce of State Tax Commissioner

2011 Schedule RZ instructions

Taxpayer—

means an individual, estate,

•

The starting date of the 5-year

trust, partnership, corporation, limited

2011

exemption or credit period, if

liability company, or other entity subject to

applicable.

Schedule RZ

N.D.C.C. ch. 57-35.3 (ﬁ nancial institution

The information in the ﬁ nal zone project

tax) or N.D.C.C. ch. 57-38 (income tax).

approval letter will be needed to complete

instructions

Zone—

means a state-approved

Schedule RZ. A copy of the ﬁ nal zone

renaissance zone created under the Act.

project approval letter must be attached

General

Zone project—

means a qualifying

to the North Dakota tax return along

information

transaction with respect to a parcel of

with Schedule RZ. If a taxpayer did not

property that is approved by both the

receive a copy of the letter or misplaces it,

local zone authority and the North Dakota

the taxpayer must contact the local zone

Commerce Department’s Division of

authority to obtain one.

Purpose of form

Community Services.

Prior to the issuance of the ﬁ nal zone

Schedule RZ is a supplemental schedule

Zone project property—

means the

project approval letter, the Division of

that must be completed by a taxpayer

portion of a parcel of property that has

Community Services will sometimes issue

claiming any of the income or ﬁ nancial

been approved as a zone project.

a preliminary letter. The purpose of the

institution tax incentives available under

preliminary letter is to allow the taxpayer

the North Dakota Renaissance Zone Act.

Eligibility for tax incentives

to proceed with the eligible transaction or

All four pages of Schedule RZ must be

Except for the tax credit for investing in a

begin the rehabilitation work. The ﬁ nal

attached to the taxpayer’s North Dakota

renaissance fund organization, eligibility

zone project approval letter is issued only

tax return.

for the tax incentives is dependent on

after the Division of Community Services

having a zone project.

determines that the project has satisﬁ ed the

For detailed information about the

criteria for eligibility.

available tax incentives under the Act,

Zone project

see the renaissance zone tax incentives

A zone project is a transaction in a zone

Passthrough entity. In the case of a

guideline on the Ofﬁ ce of State Tax

that is approved by both the local zone

passthrough entity, the copy of the zone

Commissioner’s web site at

authority and the North Dakota Commerce

project approval letter must be attached to

Department’s Division of Community

the entity’s tax return. The owners of the

Services. A taxpayer must apply to the

passthrough entity do not attach a copy

Deﬁ nitions

local zone authority for approval of a

of the zone project approval letter to their

Unless stated otherwise in these

proposed transaction as a zone project.

North Dakota tax returns.

instructions, the following deﬁ nitions

Local zone authority. For more

apply:

Passthrough entity

information on eligible transactions and

Act—

means the Renaissance Zone

If the taxpayer is a partnership that ﬁ les

how to apply for a zone project, contact the

Act under North Dakota Century Code

Form 58 or an S corporation that ﬁ les

local zone authority for the zone in which

ch. 40 -63.

Form 60, the amount of the exemption

the project will be located prior to entering

or credit must be determined at the

Local zone authority—

means the

the transaction.

passthrough entity level and passed

governing body of the city in which the

through to the owners in proportion to

Zone project approval letter

zone is located, or the entity designated

their respective interests in the entity.

by the city governing body to promote,

Upon ﬁ nal approval of a zone project, the

This also applies to a limited liability

develop, and manage the zone.

North Dakota Commerce Department’s

company treated like a partnership or

Parcel of property—

Division of Community Services will

means a speciﬁ c

an S corporation. Schedule RZ must be

issue a ﬁ nal zone project approval letter to

piece of real property consisting of land

completed by the entity and attached to

the local zone authority, a copy of which

and the buildings, ﬁ xtures, structures, and

Form 58 or Form 60. The total amount of

is also provided to the taxpayer. Among

improvements afﬁ xed to the land.

the exemption or credit must be reported

other things, the letter will include the

Passthrough entity—

means a

on Schedule K of the applicable return.

following:

partnership, S corporation, or limited

•

Each owner’s share of the exemption or

Project number assigned to the project

liability company treated like a partnership

credit must be reported on North Dakota

by the local zone authority.

or S corporation. This does not include

Schedule K-1. See the instructions to

•

Description of the tax incentive(s)

a cooperative or a real estate investment

Form 58 or Form 60 for more information.

allowed for the project. (This does not

trust.

include any property tax exemption

Renaissance fund organization—

determined at the local government

means an entity established by a city for

level.)

the sole purpose of raising funds to invest

in and provide ﬁ nancing to zone projects

and other projects located in a renaissance

zone.

Schedule Rz - Booklet - Renaissance Zone Act Exemptions And Tax Credits - 2011 Page 3

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