N.D.C.C. § 57-38-01.15 — Proration and itemization of deductions and exemptions

Repealed by S.L. 1989, ch. 710, § 4.
57-38-01.16. Income tax credit for employment of individuals with developmental
disabilities or severe mental illness.
1. A taxpayer filing an income tax return under this chapter may claim a credit against the
tax liability imposed under section 57 -38-30 or section 57 -38-30.3 for a portion of the
wages paid to an employee with a developmental disability or a severe mental illness.
2. The credit allowed under this section equals twenty-five percent of up to six thousand
dollars in wages paid annually by the taxpayer for each employee with a
developmental disability or severe mental illness, if the department of health and
human services' vocational rehabilitation division determines the individual has a most
significant disability, is eligible for services, and requires customized employment or
supported employment to obtain competitive integrated employment.
3. Only wages actually paid during the taxpayer's taxable year may be considered for
purposes of this section. An employee of a subcontractor is considered an employee
of the contractor to the extent of any wages paid under the contract.
4. The total of credits allowed under this section may not exceed fifty percent of the
taxpayer's liability under this chapter.
5. A taxpayer shall apply, on a form and in the manner prescribed by the department of
health and human services' vocational rehabilitation division, for a determination of
whether an employee meets the requirements under subsection 2. If an employee
meets the requirements, a letter of certification containing the names of the taxpayer
and the qualifying employee must be issued to the taxpayer.
6. A taxpayer claiming a credit under this section shall include a copy of the certification
letter received from the department of health and human services' vocational
rehabilitation division with the taxpayer's return filed under this chapter for each
taxable year the credit is claimed.
7. 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 57-38-30.3.