N.D.C.C. § 57-38-01.7 — Income tax credit for charitable contributions - Limitation

1. At the election of the taxpayer, there must be allowed, subject to the applicable
limitations provided in this subsection, as a nonrefundable credit against the income
tax liability under section 57-38-30 or 57-38-30.3 for the taxable year, an amount equal
to fifty percent of the aggregate amount of charitable contributions made by the
taxpayer during the year to nonprofit private institutions of higher education located
within the state or to the North Dakota independent college fund. The amount
allowable as a credit under this subsection for any taxable year may not exceed fifty
percent of the taxpayer's total income tax under this chapter for the year, or two
thousand five hundred dollars, whichever is less.
2. At the election of the taxpayer, there must be allowed, subject to the applicable
limitations provided in this subsection, as a nonrefundable credit against the income
tax liability under section 57-38-30 or 57-38-30.3 for the taxable year, an amount equal
to fifty percent of the aggregate amount of charitable contributions made by the
taxpayer during the year directly to nonprofit private institutions of secondary
education, located within the state. The amount allowable as a credit under this
subsection for any taxable year may not exceed fifty percent of the taxpayer's total
income tax under this chapter for the year, or two thousand five hundred dollars,
whichever is less.
3. At the election of the taxpayer, there must be allowed, subject to the applicable
limitations provided in this subsection, as a nonrefundable credit against the income
tax liability under section 57-38-30 or 57-38-30.3 for the taxable year, an amount equal
to fifty percent of the aggregate amount of charitable contributions made by the
taxpayer during the year directly to nonprofit private institutions of primary education,
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located within the state. The amount allowable as a credit under this subsection for
any taxable year may not exceed fifty percent of the taxpayer's total income tax under
this chapter for the year, or two thousand five hundred dollars, whichever is less.
4. A passthrough entity entitled to a 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.
5. For purposes of this section, the term "nonprofit private institution of higher education"
means only a nonprofit private educational institution located in the state of North
Dakota which normally maintains a regular faculty and curriculum, which normally has
a regularly organized body of students in attendance at the place where its educational
activities are carried on, and which regularly offers education at a level above the
twelfth grade. The term "nonprofit private institution of secondary education" means
only a nonprofit private educational institution located in North Dakota which normally
maintains a regular faculty and curriculum approved by the state department of public
instruction, which normally has a regularly organized body of students in attendance at
the place where its educational activities are carried on, and which regularly offers
education to students in the ninth through the twelfth grades. The term "nonprofit
private institution of primary education" means only a nonprofit private educational
institution located in North Dakota which normally maintains a regular faculty and
curriculum approved by the state department of public instruction, which normally has
a regularly organized body of students in attendance at the place where its educational
activities are carried on, and which regularly offers education to students in
kindergarten through eighth grade.
6. For purposes of this section, a taxpayer may elect to treat a contribution as made in
the preceding taxable year if the contribution and election are made not later than the
time prescribed in section 57 -38-34 for filing the return for that taxable year, including
extensions granted by the commissioner.
57-38-01.8. Income tax credit for installation of geothermal, solar, wind, or biomass
energy devices.
1. A taxpayer filing a North Dakota income tax return pursuant to the provisions of this
chapter may claim a credit against the tax liability under section 57 -38-30 for the cost
of a geothermal, solar, or biomass energy device installed before January 1, 2015, in a
building or on property owned or leased by the taxpayer in North Dakota. A wind
energy device on which construction was commenced before January 1, 2015, and
which is installed before January 1, 2017, is eligible for the credit provided in this
section. The credit for a device installed before January 1, 2001, must be in an amount
equal to five percent per year for three years, and for a device installed after
December 31, 2000, must be in an amount equal to three percent per year for five
years of the actual cost of acquisition and installation of the geothermal, solar, wind, or
biomass energy device and must be subtracted from any income tax liability of the
taxpayer as determined pursuant to the provisions of this chapter.
2. For the purposes of this section:
a. "Biomass energy device" means a system using agricultural crops, wastes, or
residues; wood or wood wastes or residues; animal wastes; landfill gas; or other
biological sources to produce fuel or electricity.
b. "Geothermal energy device" means a system or mechanism or series of
mechanisms designed to provide heating or cooling or to produce electrical or
mechanical power, or any combination of these, by a method which extracts or
converts the energy naturally occurring beneath the earth's surface in rock
structures, water, or steam.
c. "Solar or wind energy device" means a system or mechanism or series of
mechanisms designed to provide heating or cooling or to produce electrical or
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mechanical power, or any combination of these, or to store any of these, by a
method which converts the natural energy of the sun or wind.
3. If a geothermal, solar, wind, or biomass energy device is a part of a system which uses
other means of energy, only that portion of the total system directly attributable to the
cost of the geothermal, solar, wind, or biomass energy device may be included in
determining the amount of the credit. The costs of installation may not include costs of
redesigning, remodeling, or otherwise altering the structure of a building in which a
geothermal, solar, wind, or biomass energy device is installed.
4. A partnership, subchapter S corporation, limited partnership, limited liability company,
or any other passthrough entity that installs a geothermal, solar, wind, or biomass
energy device in a building or on property owned or leased by the passthrough entity
must be considered to be the taxpayer for purposes of this section, and the amount of
the credit allowed with respect to the entity's investments 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 corporate partners, shareholders, or members in
proportion to their respective interests in the passthrough entity.
5. If a taxpayer entitled to the credit provided by this section is a member of a group of
corporations filing a North Dakota consolidated tax return using the combined
reporting method, the credit may be claimed against the aggregate North Dakota tax
liability of all of the corporations included in the North Dakota consolidated return.
6. a. The credit allowed under this section may not exceed the liability for tax under
this chapter. If the amount of credit determined under this section exceeds the
liability for tax under this chapter, the excess may be used as a credit carryover to
each of the five succeeding taxable years.
b. Any excess tax credits earned for wind energy devices installed after
September 30, 2008, and before January 1, 2012, may be used as a credit
carryover to each of the thirty succeeding taxable years.
c. For any tax credits for geothermal, solar, or biomass energy devices installed
after September 30, 2008, and wind energy devices installed after December 31,
2011, the excess may be used as a credit carryover to each of the ten
succeeding taxable years.
7. For geothermal, solar, wind, or biomass energy devices installed after December 31,
2006, if ownership of a device is transferred at the time installation is complete and the
device is fully operational, the purchaser of the device is eligible for the tax credit
under this section. Subsequent purchasers of the device are not eligible for the tax
credit.
8. An individual taxpayer filing a North Dakota return pursuant to the provisions of this
chapter may claim a credit against the tax liability under section 57-38-30.3 for the cost
of a geothermal energy device installed after December 31, 2008, and before
January 1, 2015, in a building or on property owned or leased by the taxpayer in North
Dakota. The credit must be in an amount equal to three percent per year for five years
of the actual cost of acquisition and installation of the geothermal energy device.