N.D.C.C. § 57-38-01.23 — Income tax credit for biodiesel or green diesel sales equipment costs

A seller of biodiesel fuel or green diesel fuel is entitled to a credit against tax liability
determined under section 57 -38-30 or 57-38-30.3 in the amount of ten percent per year for five
years of the biodiesel or green diesel fuel seller's direct costs incurred to adapt or add
equipment to a facility, licensed under section 57-43.2-05, to enable the facility to sell diesel fuel
containing at least two percent biodiesel fuel or green diesel fuel by volume. For purposes of
this section, "biodiesel fuel" and "green diesel fuel" mean fuel as defined in section 57 -43.2-01.
The credit under this section may not exceed a taxpayer's liability as determined under this
chapter for the taxable year and each year's unused credit amount may be carried forward for
up to five taxable years. A biodiesel or green diesel fuel seller is limited to fifty thousand dollars
in the cumulative amount of credits under this section for all taxable years. A biodiesel or green
diesel fuel seller may not claim a credit under this section for any taxable year before the
taxable year in which the facility begins selling biodiesel or green diesel fuel containing at least
two percent biodiesel or green diesel fuel by volume, but eligible costs incurred before the
taxable year sales begin may be claimed for purposes of the credit under this section for taxable
years on or after the taxable year sales of biodiesel or green diesel fuel begin.
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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 entity level must
be passed through to the partners, shareholders, or members in proportion to their respective
interests in the passthrough entity.