§ 26.1-50-06 — Tax credit

If the requirements of this chapter are met, an insurer is entitled to a credit against taxes
due under section 26.1-03-17 or 26.1-11-06 as determined under this section. If the insurer is a
member of an insurance holding company system, the insurer or any affiliate insurer is entitled
to a credit against taxes under section 26.1-03-17 or 26.1-11-06 as determined under this
section.
1. An insurer making or participating in a loan under this chapter or an affiliate insurer
under this chapter is entitled to a premium tax credit calculated for each calendar year
the loan is in place. The amount of the credit is the difference between:
a. The participating insurer's share of the interest earned on the loan during the
calendar year; and
b. The participating insurer's share of an amount of interest that would have been
earned during the same period by applying an interest rate, calculated by adding
three hundred basis points to a comparable treasury security rate at the date of
the issuance of the loan.
2. The maximum credit allowed an insurer for any calendar year is the amount of interest
that would have been earned during the period by applying an interest rate of three
hundred basis points. A credit may not be allowed if the interest earned exceeds the
interest that would have been earned by applying the calculation in subdivision b of
subsection 1.
3. The credit may not exceed the total amount of the insurer's tax liability under
subsection 1 of section 26.1-03-17 and no unused credit may be carried forward.
4. Credits under this section for all insurers may not exceed seven hundred fifty thousand
dollars in a calendar year.