Fillable Schedule Nd-1tc - Tax Credits - 2013 (Page 3 of 6) in pdf

North Dakota Ofﬁ ce of State Tax Commissioner

2013 Schedule ND-1TC instructions

Page 2

Lifetime credit limit. A taxpayer is

“Qualifying new employment” equals

Line 7 - Biodiesel or green diesel

allowed no more than $3,000 in total tax

the excess of compensation paid to North

fuel seller credit

credits for eligible wages paid in all tax

Dakota resident employees employed

A tax credit is allowed to a North Dakota

years.

during the current tax year over the

licensed fuel seller (retailer) of biodiesel

compensation paid to North Dakota

Line 8a. Enter the allowable credit on

or green diesel fuel. The credit is equal to

resident employees employed during the

this line. Include on this line an employer

10% of the costs to adapt or add equipment

previous tax year. Do not include salary

internship program credit from a North

to the seller’s facility in North Dakota to

increases, cost of living adjustments,

Dakota Schedule K-1.

enable it to sell biodiesel or green diesel

or any other increase in compensation

with a minimum 2% blend (“B2”) that

Line 8b. Enter the number of eligible

not directly related to the hiring of new

meets ASTM speciﬁ cations. The credit

interns hired during the 2013 tax year.

employees during the tax year.

is allowed in each of 5 tax years, starting

Disregard this line if the credit is from a

If the total credit (including a credit from

with the tax year in which sales of the

North Dakota Schedule K-1.

a North Dakota Schedule K-1) that is ﬁ rst

eligible fuel begin. Eligible costs incurred

Line 8c. Enter on this line the total

allowed on the 2013 tax year’s return

before the tax year in which sales of

amount of wages, salaries, or other

exceeds the tax for the year, the unused

the eligible biodiesel fuel begin may be

compensation paid to eligible interns

credit may be carried over to subsequent

included. Include on this line a biodiesel

during the 2013 tax year (as shown on

tax years’ returns for up to 5 years.

or green diesel fuel credit from a North

their 2013 Form W-2s). Disregard this

Dakota Schedule K-1. If the total credit

Lifetime credit limit. A taxpayer is

line if the credit is from a North Dakota

(including a credit from a North Dakota

allowed no more than $10,000 in total tax

Schedule K-1.

Schedule K-1) that is ﬁ rst allowed on the

credits for all tax years.

2013 tax year’s return exceeds the tax for

Line 9a. Enter the allowable credit on this

Line 9 - Microbusiness credit

the year, the unused credit may be carried

line. Include on this line an unused credit

over to subsequent tax years’ returns for up

A tax credit is allowed to an eligible small

carried over from a prior tax year and a

to 5 years.

business certiﬁ ed as a microbusiness by

microbusiness credit from a North Dakota

the North Dakota Commerce Department’s

Unused credit carryover. Include on this

Schedule K-1.

Division of Economic Development and

line an allowable unused credit carried

Finance (EDF). The credit is equal to 20%

Line 9b. Enter on this line the amount

over from tax years 2008 through 2012.

of the total of qualifying new investment

of qualifying new investment in 2013 on

Lifetime credit limit. A taxpayer is

and qualifying new employment.

which the credit is based. Disregard this

allowed no more than $50,000 in total tax

line if the credit is from a North Dakota

“Qualifying new investment” equals the

credits for eligible costs incurred in all tax

Schedule K-1.

excess of the cost of real property and

years.

depreciable personal property located in

Line 9c. Enter on this line the amount of

North Dakota purchased during the current

qualifying new employment in 2013 on

tax year over the cost of real property

Line 8 - Employer internship

which the credit is based. Disregard this

program credit

and depreciable personal property located

line if the credit is from a North Dakota

in North Dakota purchased during the

A tax credit is allowed to a taxpayer

Schedule K-1.

previous tax year. Do not include the cost

based on compensation paid to an eligible

of vehicles registered for operation on

college student hired as an intern under

Line 10 - Research expense credit

North Dakota roads and highways. Include

a qualifying internship program set up in

If you incurred qualiﬁ ed expenses for

the excess of eligible rent paid to lease

North Dakota. The credit is equal to 10%

qualiﬁ ed research in North Dakota, you

real property and depreciable personal

of the compensation paid during the tax

may be eligible for a tax credit. The credit

property located in North Dakota during

year. The credit is allowed for up to 5

is allowed on the excess of “qualiﬁ ed

the current tax year over the eligible rent

eligible interns in a tax year. The intern

research expenses” over a “base amount.”

paid to lease real property and depreciable

must be enrolled in an institution of higher

These terms have the same meaning as

personal property located in North Dakota

education or vocational technical education

those deﬁ ned under Internal Revenue Code

during the previous tax year. “Eligible

program in a major ﬁ eld of study closely

§ 41, but only to the extent the expenses

rent” means the average net annual rent

related to the work to be performed and

were incurred within North Dakota. The

multiplied by the number of years, not

must be supervised and evaluated by the

tax credit is equal to a percentage of the

to exceed 10 years, that the taxpayer is

employer. The internship must qualify for

excess of North Dakota qualiﬁ ed research

obligated under the lease contract. Do

academic credit.

expenses incurred during the tax year over

not include any increase in rent paid for

the North Dakota base amount for the

property leased under a contract entered

tax year. On the ﬁ rst $100,000 of excess

into prior to the current tax year.

Schedule Nd-1tc - Tax Credits - 2013 Page 3

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