Fillable Schedule Nd-1tc - Tax Credits - 2013 (Page 4 of 6) in pdf

North Dakota Ofﬁ ce of State Tax Commissioner

2013 Schedule ND-1TC instructions

Page 3

North Dakota qualiﬁ ed research expenses,

Dakota Schedule K-1. Do not include

obtained from another taxpayer through a

the percentage is 25%. On excess North

on this line any research credit obtained

sale, assignment, or transfer—report this

Dakota qualiﬁ ed research expenses

from another taxpayer through a sale,

amount on Line 11b.

over $100,000 for the 2013 tax year, the

assignment, or transfer in 2013—report

Line 11b. Enter on this line an unused

percentage is:

this amount on Line 10b.

credit carried over from a prior tax year

• 20%, if you ﬁ rst started conducting

Line 10b. Enter on this line a research

that was obtained from another taxpayer

qualiﬁ ed research in North Dakota in

credit obtained from another taxpayer

through a sale, assignment, or transfer.

tax years 2007 through 2010, or

through a sale, assignment, or transfer in

• 8%, if you ﬁ rst started conducting

2013.

Line 12 - Endowment fund credit

qualiﬁ ed research in North Dakota after

from passthrough entity

the 2010 tax year.

Line 11 - Angel fund investment

If you owned an interest in a partnership

Tax planning note: If qualiﬁ ed research

credit

or other passthrough entity that qualiﬁ ed

is conducted in North Dakota for the ﬁ rst

If you made a qualiﬁ ed investment

for the North Dakota endowment fund tax

time in tax years 2007 through 2010, the

in a North Dakota angel fund, enter

credit, enter on this line your share of the

20% credit percentage for excess North

your allowable credit on this line—see

credit from North Dakota Schedule K-1.

Dakota qualiﬁ ed research expenses over

instructions to line 11a below. A qualiﬁ ed

If you are unable to use all of the credit

$100,000 only applies for the 2007 through

investment is evidenced by the investment

received from the passthrough entity on

2016 tax years; it changes to 8% for tax

reporting form that the angel fund is

your 2013 return, the unused portion may

years after 2016. If qualiﬁ ed research is

required to provide to you at the time you

be carred over to subsequent tax years’

conducted in North Dakota for the ﬁ rst

made your investment. The credit is equal

returns for up to 3 years. Include on this

time after the 2010 tax year, the credit

to the smaller of (1) 45% of the investment

line an allowable unused credit carried

percentage for excess North Dakota

or (2) $45,000. If you claim an angel

over from tax years 2010 through 2012.

qualiﬁ ed research expenses over $100,000

fund credit for an investment in an angel

is 8% for all tax years.

fund, you may not claim a seed capital

Line 13 - Workforce recruitment

investment tax credit or an agricultural

If the total credit (including a credit from

credit

commodity processing facility investment

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

A tax credit is allowed to an employer for

tax credit passed through to you by the

allowed on the 2013 tax year’s return

using extraordinary recruitment methods

same angel fund.

exceeds the tax for the year, the unused

to recruit and hire employees for hard-to-

credit may be carried back to the previous

If the total credit (including a credit from

ﬁ ll positions in North Dakota. The credit

3 tax years’ returns and carried forward

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

is equal to 5% of the compensation paid

to the subsequent 15 tax years’ returns. It

allowed on the 2013 tax year’s return

during the ﬁ rst 12 consecutive months

must be carried back to the earliest tax year

exceeds the tax for the year, the unused

to the employee hired to ﬁ ll a hard-to-

ﬁ rst, and then to each succeeding tax year

credit may be carried over to subsequent

ﬁ ll position. The credit is allowed in the

until it is used up.

tax years’ returns for up to 7 years.

ﬁ rst tax year following the tax year in

Election to sell, assign, or transfer

which the employee completes the 12th

Lifetime credit limit. For investments

unused credit. If you have an unused

consecutive month of employment.

made in angel funds on or after January 1,

research credit and you obtain certiﬁ cation

2013, you are allowed no more than

To be eligible for the credit, the employer

as a “qualiﬁ ed research and development

$500,000 in total angel fund credits based

must pay an annual salary that is at

company,” you may elect to sell,

on your own investments plus any angel

least 125% of North Dakota’s average

assign, or transfer the unused credit to

fund credits you receive as an owner of a

wage as published by Job Service North

another taxpayer. For the conditions

passthrough entity that invested in an angel

Dakota and must have employed all of

and procedures, including the reporting

fund. If you are married, you and your

the following recruitment methods for at

requirements, see N.D.C.C. § 57-38-30.5.

spouse are considered one taxpayer for this

least 6 months to ﬁ ll a position for which

Application for certiﬁ cation must be

purpose.

the credit is claimed: (1) contracted with

made to the North Dakota Commerce

a professional recruiter for a fee; (2)

Line 11a. Enter the allowable credit on

Department’s Division of Economic

advertised in a professional trade journal,

this line. Include on this line an allowable

Development and Finance (EDF).

magazine, or other publication directed at a

unused credit carried over from a prior

Line 10a. Enter the allowable credit on

particular trade or profession; (3) provided

tax year and an angel fund credit from

this line. Include on this line an allowable

employment information on a web site

a North Dakota Schedule K-1. Do not

unused credit carried over from a prior tax

for a fee; and (4) offered to pay a signing

include on this line an unused credit

year and a research credit from a North

bonus, moving expenses, or non-typical

carried over from a prior tax year that was

fringe beneﬁ ts.

Schedule Nd-1tc - Tax Credits - 2013 Page 4

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