§ 57-38-01.31 — Employer tax credit for salary and related retirement plan contributions for mobilized employees

North Dakota § 57-38-01.31

• Jurisdiction: North Dakota
• Title 57: Taxation
• Ch. 57-38: Income Tax

Text

for mobilized employees.
1. A taxpayer who is an employer in this state is entitled to a credit against tax liability as
determined under sections 57-38-30 and 57-38-30.3 equal to twenty-five percent of
the reduction in compensation that the taxpayer continues to pay during the taxable
year to, or on behalf of, each employee of the taxpayer during the period that the
employee is mobilized under title 10 of the United States Code as a member of a
reserve or national guard component of the armed forces of the United States. The
maximum credit allowed for each eligible employee is one thousand dollars. The
amount of the tax credit may not exceed the amount of the taxpayer's state tax liability
for the tax year and an excess credit may be carried forward for up to five taxable
years. For the purposes of this subsection:
a. "Reduction in compensation" means the amount by which the pay received
during the taxable year by the employee for service under title 10 of the United
States Code is less than the total amount of salary and related retirement plan
contributions that would have been paid by the taxpayer to the employee for the
same time period had the employee not been mobilized.
b. "Related retirement plan contributions" means the portion of voluntary or
matching contributions paid by the taxpayer into a defined contribution plan
maintained by the taxpayer for the employee.
2. A passthrough entity that is an employer in this state must be considered to be a
taxpayer for purposes of this section. The amount of the credit determined at the

passthrough entity level must be passed through to the partners, shareholders, or
members in proportion to their respective interests in the passthrough entity.