North Dakota § 57-38-01.26 Angel investor tax credit

North Dakota Statutes

§ 57-38-01.26 — Angel investor tax credit

North Dakota § 57-38-01.26

Title 57Taxation

Ch. 57-38Income Tax

This text of North Dakota § 57-38-01.26 (Angel investor tax credit) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 57-38-01.26 (2026).

Text

1.For investments made after June 30, 2017, an angel investor is entitled to a credit against the income tax liability under section 57-38-30.3 for investments made by a certified angel fund into an in-state qualified business or an out-of-state qualified business. The credit is equal to thirty-five percent of the amount invested by the angel fund on behalf of the angel investor in an in-state qualified business during the taxable year and twenty-five percent of the amount invested by the angel fund on behalf of the angel investor in an out-of-state qualified business during the taxable year.

a.The aggregate amount of credits allowed to an angel investor in a taxable year is limited to forty-five thousand dollars. The aggregate amount of credits allowed to an angel investor for investmen

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1. For investments made after June 30, 2017, an angel investor is entitled to a credit
against the income tax liability under section 57-38-30.3 for investments made by a
certified angel fund into an in-state qualified business or an out-of-state qualified
business. The credit is equal to thirty-five percent of the amount invested by the angel
fund on behalf of the angel investor in an in-state qualified business during the taxable
year and twenty-five percent of the amount invested by the angel fund on behalf of the
angel investor in an out-of-state qualified business during the taxable year.
a. The aggregate amount of credits allowed to an angel investor in a taxable year is
limited to forty-five thousand dollars. The aggregate amount of credits allowed to
an angel investor for investments made in all taxable years is five hundred
thousand dollars. The limitation under this subdivision does not apply to the angel
fund but applies to each angel investor.
b. The credit must be claimed in the taxable year in which the investment is made in
an in-state qualified business or an out-of-state qualified business. The credit
allowed may not exceed the liability for tax under this chapter. If the amount of the
credit determined under this section exceeds the liability for tax under this
chapter, the excess may be carried forward to each of the five succeeding taxable
years.
c. The investment used to calculate the credit under this section may not be used to
calculate any other income tax deduction or credit allowed by law.
d. Angel investors may not receive more than five million dollars in aggregate
credits under this section during the life of an angel fund but this provision may
not be interpreted to limit additional investments in that angel fund.
e. Investments placed in escrow do not qualify for the credit.
f. A passthrough entity entitled to the credit under this section must be considered
to be the taxpayer for purposes of calculating the credit. The amount of the
allowable credit must be determined at the passthrough entity level. The total
credit determined at the entity level must be passed through to the partners,
shareholders, or members in proportion to their respective interests in the
passthrough entity. An individual taxpayer may take the credit passed through
under this section against the individual's state income tax liability under section