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

North Dakota Ofﬁ ce of State Tax Commissioner

2011 Schedule RZ instructions

Line 2

•

The 60-month credit period did not

Enter the project number assigned to the

expire during the tax year. This

Instructions for

zone project by the local zone authority.

condition is satisﬁ ed if the 60th month

The project number is shown on the

Part 3

of the credit period falls in the last

ﬁ nal zone project approval letter. If the

month of the tax year or later.

taxpayer does not have a copy of the ﬁ nal

Single-family

Partial-year eligibility. The taxpayer is

zone project approval letter, contact the

residence tax

eligible for the credit for only part of the

local zone authority.

tax year if any of the following apply:

Attach a copy of the ﬁ nal zone project

credit

•

The taxpayer became eligible for the

approval letter to the North Dakota

credit during the tax year in a month

return.

other than the ﬁ rst month of the tax

Five-year credit period

Line 3

year. See

General instructions

page 6.

Enter the name of the renaissance zone city

•

where the zone project property is located.

The taxpayer ceases to use the zone

Who should complete

project property for business purposes

Line 4

during the tax year.

Complete Part 3 if the incentive allowed

Enter the street address of the zone project

•

for the zone project, as speciﬁ ed in the

The 60-month credit period expired

property. Include the suite or unit number,

zone project approval letter, is the single-

during the tax year, and the 60th month

if applicable. Do not enter a post ofﬁ ce

family residence tax credit. This credit

is not the last month of the tax year.

box number.

is only allowed to an individual on Form

If any of the above conditions apply,

ND-1.

Line 5

enter on line 9 the number of months the

If the taxpayer qualiﬁ ed for more than one

taxpayer is eligible for the credit during

Five-year credit period

zone project at the same street address,

the tax year. Enter the smaller of the

The credit is allowed in each year of a ﬁ ve-

check the “Yes” box and enter the project

following:

year credit period. The ﬁ ve-year credit

numbers for all of them on the line

•

Number of months in the 60-month

period is a period of sixty consecutive

provided on the schedule.

exemption period available as of

months, consisting of ﬁ ve 12-month

the beginning of the tax year. If the

periods. The $10,000 credit is allowed

Line 8

60-month credit period began in this tax

in each of the ﬁ ve 12-month periods. If

Enter the ﬁ ve-year exemption period

year, use 60 months.

the individual is not eligible for the tax

start date for the zone project, as shown

•

credit for the entire tax year, a credit

Number of months the taxpayer owned

on the ﬁ nal zone project approval letter.

or leased the zone project property

equal to $833.33 ($10,000 divided by 12)

This date establishes the beginning of the

is allowed for each month of eligibility

during the tax year. If the taxpayer

ﬁ ve-year credit period that applies to the

acquired the zone project property

during the tax year.

zone project property. This date does not

during the tax year, include the month

change even if the property is transferred

Once the 60-month credit period begins to

of acquisition. If the taxpayer disposed

Five-year credit

run, it runs uninterrupted through the end

to another taxpayer. See

of the zone project property during

period

of the 60-month credit period. The credit

on page 6 for more information.

the tax year, exclude the month of

is allowed over the entire 60-month credit

disposition.

Line 9

period even if the renaissance zone itself

•

Number of months the zone project

Credit period limitation

expires before the end of the 60-month

property was used in the business

credit period.

Full-year eligibility. If the taxpayer is

during the tax year. Include the month

eligible for the credit for the entire tax

Transfer of zone project property. The

in which the zone project property was

year, enter “12” on line 9 and go to line 10.

tax credit and its ﬁ ve-year credit period

ﬁ rst put into use in the business, and

attach to the single-family residence. If the

exclude the month in which the zone

The taxpayer is eligible for the credit for

residence is transferred to another taxpayer

project was permanently removed from

the entire tax year if all of the following

before the ﬁ ve-year credit period expires,

use in the business.

apply:

the tax credit and the unused portion of

•

The taxpayer was eligible for the credit

the ﬁ ve-year credit period transfer with the

as of the beginning of the tax year. See

property.

Five-year credit period

on page 6.

•

The individual who transfers the residence

The taxpayer used the zone project

is ineligible for the tax credit starting with

property in the business for the entire

the month of disposition. If the residence

tax year.

is transferred to another individual who

Schedule Rz - Booklet - Renaissance Zone Act Exemptions And Tax Credits - 2011 Page 9

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