Fillable Schedule Nd-1tc - Tax Credits - 2012 (Page 4 of 6) in pdf

North Dakota Ofﬁ ce of State Tax Commissioner

2012 Schedule ND-1TC instructions

Page 3

Tax planning note: If qualiﬁ ed research

fund. This limitation does not apply to

Line 11 - Angel fund investment

is conducted in North Dakota for the ﬁ rst

any credits you may acquire from another

credit

time in tax years 2007 through 2010, the

taxpayer by purchase, assignment, or

If you made a qualiﬁ ed investment

20% credit percentage for excess North

transfer. If you are married, you and your

in a North Dakota angel fund, enter

Dakota qualiﬁ ed research expenses over

spouse are considered one taxpayer for this

your allowable credit on this line—see

$100,000 only applies for the 2007 through

purpose.

instructions to line 11a below. A qualiﬁ ed

2016 tax years; it changes to 8% for tax

Line 11a. Enter the allowable credit on

investment is evidenced by the investment

years after 2016. If qualiﬁ ed research is

this line. Include on this line an allowable

reporting form that the angel fund is

conducted in North Dakota for the ﬁ rst

unused credit from a prior tax year and

required to provide to you at the time you

time after the 2010 tax year, the credit

an angel fund credit from a North Dakota

made your investment. The credit is equal

percentage for excess North Dakota

Schedule K-1. Do not include on this

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

qualiﬁ ed research expenses over $100,000

line any angel fund credit obtained

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

is 8% for all tax years.

from another taxpayer through a sale,

fund credit for an investment in an angel

If the total credit (including a credit from a

assignment, or transfer in 2012—report

fund, you may not claim a seed capital

North Dakota Schedule K-1) ﬁ rst allowed

this amount on Line 11b.

investment tax credit or an agricultural

on the 2012 tax year’s return exceeds

commodity processing facility investment

Line 11b. Enter on this line an angel fund

the tax for the year, the unused credit

tax credit passed through to you by the

credit obtained from another taxpayer

may be carried back to the previous 3 tax

same angel fund.

through a sale, assignment, or transfer in

years’ returns and carried forward to the

2012.

If the total credit (including a credit from a

subsequent 15 tax years’ returns. It must

North Dakota Schedule K-1) ﬁ rst allowed

be carried back to the earliest tax year ﬁ rst,

on the 2012 tax year’s return exceeds the

and then to each succeeding tax year until

Line 12 - Endowment fund credit

tax for the year, the unused credit may

it is used up.

from passthrough entity

be carried over to subsequent tax years’

If you owned an interest in a partnership

Election to sell, assign, or transfer

returns for up to 7 years.

or other passthrough entity that qualiﬁ ed

unused credit. If you have an unused

for the North Dakota endowment fund tax

Election to sell, assign, or transfer

research credit and you obtain certiﬁ cation

credit, enter on this line your share of the

credit. For investments made in an angel

as a “qualiﬁ ed research and development

credit from North Dakota Schedule K-1.

fund that is certiﬁ ed for the ﬁ rst time by

company,” you may elect to sell,

If you are unable to use all of the credit

the North Dakota Commerce Department

assign, or transfer the unused credit to

received from the passthrough entity on

on or after August 1, 2011, you may be

another taxpayer. For the conditions

your 2012 return, the unused portion may

eligible to make an irrevocable election

and procedures, including the reporting

be carred over to subsequent tax years’

to sell, assign, or transfer part or all of

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

returns for up to 3 years. Include on this

the tax credit allowed for the investment.

Application for certiﬁ cation must be

line an allowable unused credit from tax

This transfer election is only available for

made to the North Dakota Commerce

years 2009 through 2011.

investments you make directly to an angel

Department’s Division of Economic

fund; you may not transfer any angel fund

Development and Finance (EDF).

credit that you receive as an owner of a

Line 10a. Enter the allowable credit on

Line 13 - Workforce recruitment

partnership or other passthrough entity

credit

this line. Include on this line an allowable

that invested in an angel fund. There are

A tax credit is allowed to an employer for

unused credit from a prior tax year and

other conditions, procedures, and reporting

a research credit from a North Dakota

using extraordinary recruitment methods

requirements that must be satisﬁ ed to make

to recruit and hire employees for hard-to-

Schedule K-1. Do not include on this line

this election—see N.D.C.C. § 57-38-01.26.

any research credit obtained from another

ﬁ ll positions in North Dakota. The credit

This election is allowed only for the 2011

is equal to 5% of the compensation paid

taxpayer through a sale, assignment, or

and 2012 tax years.

during the ﬁ rst 12 consecutive months

transfer in 2012—report this amount on

Lifetime credit limit. For investments

Line 10b.

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

made in angel funds on or after January 1,

ﬁ ll position. The credit is allowed in the

Line 10b. Enter on this line a research

2011, you are allowed no more than

ﬁ rst tax year following the tax year in

credit obtained from another taxpayer

$150,000 in total angel fund credits based

which the employee completes the 12th

through a sale, assignment, or transfer in

on your own investments plus any angel

consecutive month of employment.

2012.

fund credits you receive as an owner of a

passthrough entity that invested in an angel

Schedule Nd-1tc - Tax Credits - 2012 Page 4

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