§ 57-38-01.40 — Apprenticeship tax credit

North Dakota § 57-38-01.40

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

Text

1. A taxpayer is entitled to a credit as determined under this section against the income
tax liability under section 57-38-30 or 57-38-30.3 for qualified compensation paid to an
individual who is an apprentice in an apprenticeship program as provided in title 29,
Code of Federal Regulations, subtitle a, part 29 or an apprentice electrician registered
under chapter 43-09 and is employed in this state by the taxpayer.
2. To qualify for the credit under this section, a taxpayer shall:
a. Directly employ, supervise, and evaluate a qualified apprentice in an
apprenticeship position located in this state.
b. For a taxpayer that employs an individual who is an apprentice in an
apprenticeship program as provided in title 29, Code of Federal Regulations,
subtitle a, part 29, obtain a certification from the United States department of
labor, bureau of apprenticeship and training, stating the taxpayer has met all the
requirements and qualifications of the apprenticeship program as provided in
title 29, Code of Federal Regulations, subtitle a, part 29 and submit to the tax
commissioner proof of the certification.
c. Submit any other information prescribed by the tax commissioner.
3. Subject to the limitations provided in this subsection, the amount of the credit to which
a taxpayer is entitled is ten percent of the stipend or salary paid to a qualified
apprentice employed by the taxpayer.
a. The aggregate amount of credits allowed to a taxpayer under this section may not
exceed three thousand dollars in total credits for all taxable years combined.
b. The tax credit under this section applies to a stipend or salary for not more than
five apprentices employed by the taxpayer at the same time.
c. The credit allowed under this section may not exceed a taxpayer's liability for tax
under this chapter. Any credit amount exceeding a taxpayer's liability for the
taxable year may not be claimed as a carryback or carryforward.

4. A passthrough entity entitled to the credit under this section must be considered to be
the taxpayer for purposes of this section and the amount of the credit allowed must be
determined at the passthrough entity level. The amount of the total credit determined
at the passthrough entity level must be allowed to the partners, shareholders, or
members in proportion to their respective interests in the passthrough entity.
5. The tax commissioner shall prescribe, design, and make available all forms necessary
to effectuate this section.