North Dakota Corporation Tax Credits

Corporation Tax Credits
Schedule 38-TC (2023)
TAX CREDITS

OFFICE OF STATE TAX COMMISSIONER

Schedule 38-TC

SFN 28701 (12-2023)

2023

Attach to Form 38
Enter Name of Estate or Trust

Federal Employer Identification Number

Important! All taxpayers must read this section. If claiming a credit on line 1, 2, 3, 4, 5, 6a, 7a, 7b, 8, 9a, or 14a of this
schedule, this section must be completed. See "Property tax clearance" in instructions for details.

►

Does estate or trust hold a 50 percent or more ownership interest in real property located in
North Dakota?

Yes

If yes, enter name of each North Dakota county in which the estate or trust holds a 50% or more interest in real property:

__________________________________________________________________________________

Attach to Form 38 the completed Property Tax Clearance Record obtained from each county identified above.
For each credit, enter the total credit earned or received by the estate or trust on the applicable line, regardless of
whether a portion of the credit is allocated to the beneficiaries. If a portion of any credit is allocated to the
beneficiaries, report the allocated amount on page 2, line 22b. See separate instructions for more information.
1. Renaissance zone tax credit (Attach Schedule RZ)

1

2. Agricultural commodity processing facility investment tax credit (Attach documentation)

2

3. Seed capital investment tax credit (Attach documentation)

3

4. Biodiesel or green diesel fuel blending tax credit (Attach documentation)

4

5. Biodiesel or green diesel fuel sales equipment tax credit (Attach documentation)

5

6. a. Employer internship program tax credit (Attach documentation)

6a

b. Number of eligible interns employed in 2023

6b

c. Total compensation paid to eligible interns in 2023

6c

7. a. Research expense tax credit (Attach documentation)

7a

b. Research expense tax credit purchased from another taxpayer in 2023
8. Angel fund investment tax credit carryover - only for unused credits attributable to investments
made in angel funds organized and certified before July 1, 2017 (Attach documentation)
9. a. Workforce recruitment tax credit (Attach documentation)

7b
8
9a

b. Number of eligible employees whose 12th
month of employment ended in 2022 tax year

9b

c. Total compensation paid for first 12 months of employment to eligible employees included on line 9b

9c

10. Geothermal energy device tax credit (only for devices installed on or after January 1, 2009,
and before January 1, 2015): (Attach documentation)
a. Date on which installation of device was completedenter as follows: mm/dd/yyyy

10a

b. Amount of unused credit carryover

10b

11. Tax credit for wages paid to a mobilized employee (Attach Schedule ME)
12. a. Endowment fund tax credit from Schedule QEC, line 7 (Attach Schedule QEC)
b. Contribution amount from Schedule QEC, line 4

13. Housing incentive fund tax credit carryover (Attach documentation)
14. a. Automation tax credit
b. Automation tax credit carryover

12a

12b

c. Endowment fund tax credit from ND Schedule K-1 (Attach ND Schedule K-1)
d. Contribution amount from ND Schedule K-1

11

12c

12d
13
14a
14b

No

2023 Schedule 38-TC
SFN 28701 (12-2023), Page 2

15. Nonprofit private primary school contribution tax credit (Attach documentation)

15

16. Nonprofit private high school contribution tax credit (Attach documentation)

16

17. Nonprofit private college contribution tax credit (Attach documentation)

17

18. Developmentally disabled/mentally ill employee tax credit (Attach documentation)

18

19. Maternity home, child placement agency, or pregnancy help center credit (Attach Schedule MCP)

19

20. a. Apprentice tax credit (Attach documentation)

20a

b. Number of eligible apprentices employed in 2023

20b

c. Total compensation paid to eligible apprentices in 2023

20c

21. Add lines 1 through 6a, 7a through 9a, 10b through 12a, 12c, and 13 through 20a
22. a. Amount of line 21 retained by estate or trust. Enter this amount on Form 38, page 1, line 3
b. Amount of line 21 allocated to the beneficiaries.
Enter the amount from this line on the beneficiaries'
Schedule K-1 (Form 38) forms. See instructions for
completing Schedule K-1 (Form 38)

22b

21
22a

2023 Schedule 38-TC
SFN 28701 (12-2023), Page 3

General instructions
If a fiduciary claims an income tax
credit (other than the credit for income
tax paid to another state or local
jurisdiction), Schedule 38-TC must be
completed and attached to Form 38.
Supporting documentation. If
the instructions do not specify an
officially-prescribed schedule for a
particular credit, a fiduciary must attach
documentation to support eligibility
for the credit and to show how the
credit was calculated, including the
use of an unused credit carried over
from another tax year. In the case
of a credit received from an estate,
trust, partnership, S corporation, or a
limited liability company treated like a
partnership or S corporation, attach a
copy of the North Dakota Schedule K-1.

Property Tax Clearance

North Dakota Century Code (N.D.C.C.)
§ 57‑01‑15.1 provides that, before
certain state tax incentives may be
claimed, a taxpayer must obtain
a property tax clearance record
from each North Dakota county in
which the taxpayer holds a 50%
or more ownership interest in real
property. The property tax clearance
record(s) must be attached to the
North Dakota tax return on which the
incentive is claimed. Certain credits
on this schedule are subject to this
requirement. The credits subject to this
requirement are identified in the box at
the top of page 1 of Schedule 38-TC.
If a fiduciary is claiming any of the
specified credits, the fiduciary must
complete the property tax clearance
section at the top of page 1 of
Schedule 38-TC. If required to attach
a property tax clearance record from
a county, obtain it by using the form
Property Tax Clearance Record, which
is available on the Office of State Tax
Commissioner’s website at
www.tax.nd.gov.

Disclosure notification

Upon written request from the chairman
of a North Dakota legislative standing
committee or Legislative Management,
the law requires the Office of State Tax
Commissioner to disclose the amount
of any deduction or credit claimed on

a tax return. Any other confidential
information, such as a taxpayer’s name
or social security number, may not be
disclosed.

Specific line instructions
On lines 1 through 20a, enter the
total credit earned or received by
the estate or trust on the applicable
line, regardless of whether a
portion of the credit is allocated to
a beneficiary. If a portion of any
credit is allocated to a beneficiary,
also report the allocated amount on
line 22b.
Line 1 - Renaissance zone credit
Enter on this line credits allowed under
the North Dakota Renaissance Zone
Program. For more information, see the
Renaissance Zone Act Tax Incentives
Guideline and Schedule RZ. Attach
Schedule RZ.
Line 2 - Ag commodity processsing
facility investment credit
If the estate or trust made a qualified
investment in a business certified for
the agricultural commodity processing
facility investment credit program,
enter the allowable credit on this line.
The credit is equal to 30% of the total
qualified investments made directly to
a certified business during the 2023 tax
year. Include on this line an agricultural
commodity processing facility
investment credit from a North Dakota
Schedule K-1.
If the estate or trust is unable to use all
of a credit based on investments made
during the 2023 tax year, the estate
or trust may carry the unused credit
amount over to subsequent years’
returns for up to 10 tax years.
Unused credit carryover from a
prior tax year. Include on this line an
unused credit carried over from a prior
tax year.
Any unused credits based on
investments made in tax years prior to
2013 are no longer allowed and may
not be claimed on the 2023 tax return.
Unused credits based on investments
made in tax years 2013 through 2022
are allowed on the 2023 return, subject
to the annual and lifetime limitations—
see below.

Annual limit. Of the total credits
available for use on the 2023 return,
including unused credit carryovers from
tax years 2013 and after, no more than
$50,000 may be used on the 2023
return.
Lifetime credit limit. A taxpayer is
allowed no more than $250,000 in
credits based on investments made in
tax years 2005 and after.
Attach a copy of the Ag Commodity
Processing Facility Investment
Reporting Form received from the
certified business.
Line 3 - Seed capital investment
credit
If the estate or trust made a qualified
investment in a business certified for
the seed capital investment credit
program, enter the allowable credit on
this line.
The credit is equal to 45% of the total
qualified investments made directly to
a certified business during the 2023 tax
year. Include on this line a seed capital
investment credit from a North Dakota
Schedule K-1.
If an estate or trust is unable to use all
of a credit based on investments made
during the 2023 tax year, the estate
or trust may carry the unused credit
amount over to subsequent years’
returns for up to 4 tax years.
Unused credit carryover from a
prior tax year. Also include on this
line an unused credit carried over from
a prior tax year.
Any unused credits based on
investments made in tax years prior to
2019 are no longer allowed and may
not be claimed on the 2023 tax return.
Unused credits based on investments
made in tax years 2019 through 2022
are allowed on the 2023 return, subject
to the annual limitation—see below.
Annual limit. Of the total credits
available for use on the 2023 return,
including unused credit carryovers from
tax years 2019 and after, no more than
$112,500 may be used on the 2023
return.
Attach a copy of the Qualified
Seed Capital Business Investment
Reporting Form received from the
certified business.

2023 Schedule 38-TC
SFN 28701 (12-2023), Page 4

Line 4 - Biodiesel or green diesel
fuel blending credit
A tax credit is allowed to a
North Dakota licensed fuel supplier
(wholesaler) business that blends
biodiesel or green diesel fuel in
North Dakota with a minimum
5% blend (“B5”) meeting ASTM
specifications. The credit is equal to
$0.05 per gallon blended. Enter the
allowable credit on this line. Include on
this line a biodiesel or green diesel fuel
blending credit from a North Dakota
Schedule K-1. Also include on this line
an unused credit carried over from tax
years 2018 and after.
The unused portion of a 2023 credit
may be carried over to subsequent
years’ returns for up to five tax years.
Line 5 - Biodiesel or green diesel
fuel sales equipment credit
A tax credit is allowed to a
North Dakota licensed fuel seller
(retailer) of biodiesel or green diesel
fuel that adapts or adds equipment
to the seller’s facility in North Dakota
to enable it to sell biodiesel or green
diesel with a minimum 2% blend (“B2”)
meeting ASTM specifications. The credit
is equal to 10% of the costs to adapt
or add the qualifying equipment. The
credit is allowed in each of five tax
years, starting with the tax year in
which sales of the eligible fuel begin.
Eligible costs incurred before the tax
year in which sales of the eligible
biodiesel fuel begin may be included.
Enter the allowable credit on this line.
Include on this line a biodiesel or green
diesel fuel sales equipment credit from
a North Dakota Schedule K-1. Also
include on this line an unused credit
carried over from tax years 2018 and
after.
The unused portion of a 2023 credit
may be carried over to subsequent
years’ returns for up to five tax years.
(This five-year unused credit carryover
period applies to each of the five tax
years in which the credit is allowed.)
Lifetime credit limit. No more than
$50,000 in total tax credits is allowed
for eligible costs incurred in all tax
years.

Line 6 - Employer internship
program credit
A tax credit is allowed based on
compensation paid to an eligible college
student hired as an intern under a
qualifying internship program set up
in North Dakota. The credit is equal to
10% of the compensation paid during
the tax year. The credit is allowed
for up to five eligible interns in a tax
year. The intern must be enrolled in
an institution of higher education or
vocational technical education program
in a major field of study closely related
to the work to be performed and must
be supervised and evaluated by the
employer. The internship must qualify
for academic credit.
Lifetime credit limit. No more than
$3,000 in total tax credits is allowed for
eligible wages paid in all tax years.
Line 6a. Enter the allowable credit
on this line. Include on this line an
employer internship program credit
from a North Dakota Schedule K-1.
Line 6b. Enter the number of eligible
interns employed during the 2023 tax
year. Disregard this line if the credit is
from a North Dakota Schedule K-1.
Line 6c. Enter on this line the total
amount of wages, salaries, or other
compensation paid to eligible interns
employed during the 2023 tax year
(as shown on their 2023 Form W-2s).
Disregard this line if the credit is from a
North Dakota Schedule K-1.
Line 7 - Research expense credit
A tax credit is allowed for conducting
qualified research activity in
North Dakota. The credit is allowed
on the excess of qualified research
expenses over a base amount. The
terms “qualified research expenses”
and “base amount” have the same
meanings as those defined under
Internal Revenue Code § 41, except
that they do not include research
activity or sales outside North Dakota.
The credit is equal to a percentage of
the excess of North Dakota qualified
research expenses over the
North Dakota base amount for the
tax year. On the first $100,000 of
excess North Dakota qualified research
expenses, the percentage is 25%.
On excess North Dakota qualified
research expenses over $100,000, the
percentage is 8%.

Alternative simplified method.
For tax years beginning on or after
January 1, 2019, a taxpayer may elect
to use an alternative simplified method
to calculate the credit on North Dakota
qualified research expenses. This
election may be made regardless of the
method used to calculate the federal
research credit. A taxpayer may choose
between the regular method and the
alternative simplified method each tax
year, and the method used for a tax
year is binding for that tax year. If the
alternative simplified method is elected,
the North Dakota research credit is
equal to the sum of the following
amounts:
	 	 17.5% of the first $100,000 of
North Dakota alternative excess
research and development
expenses for the year.
	 	 5.6% of the North Dakota
alternative excess research and
development expenses in excess
of $100,000 for the year.
“North Dakota alternative excess
research and development expenses”
means the amount by which qualified
research expenses incurred in
North Dakota exceed 50% of the
average qualified research expenses
incurred in North Dakota for the three
tax years preceding the tax year for
which the credit is being determined.
If a taxpayer has zero qualified
research expenses in any of the three
preceding tax years, the credit is
equal to 7.5% of the first $100,000 of
qualified research expenses plus 2.4%
of qualified research expenses in excess
of $100,000.
Unused credit. If a taxpayer is
unable to use the entire credit based
on qualified research during the 2023
tax year, the taxpayer must carry
the unused credit back to the three
previous tax years’ returns and then
forward to subsequent years’ returns
for up to 15 tax years. The unused
credit must be carried back to the
earliest tax year first, and then to each
succeeding tax year.
Election to sell, assign, or transfer
unused credit. If a taxpayer obtains
certification as a qualified research and
development company, the taxpayer
may elect to sell, assign, or transfer
unused credits to another taxpayer.

2023 Schedule 38-TC
SFN 28701 (12-2023), Page 5

For the conditions and procedures,
including the reporting requirements,
see N.D.C.C. § 57-38-30.5. Application
for certification must be made to the
North Dakota Commerce Department’s
Division of Economic Development and
Finance (EDF).
Line 7a. Enter the allowable credit
on this line. Include on this line a
research credit from a North Dakota
Schedule K-1 and an unused credit
carried over from a prior tax year. Do
not include on this line any research
credit obtained from another taxpayer
through a sale, assignment, or transfer
in 2023—report this amount on line 7b.
Line 7b. Enter on this line a research
credit obtained from a qualified
research and development company
through a sale, assignment, or transfer
in 2023.
Line 8 - Angel fund investment
credit carryover
Important! This line is only for
an unused credit attributable to
investments made in angel funds
organized and certified before
July 1, 2017.
Enter on this line a carryover of an
unused angel fund credit that is
attributable to an investment made
in tax years beginning on or after
January 1, 2015, but made no later
than June 30, 2017.
Lifetime credit limit. For investments
made in angel funds on or after
January 1, 2013, and before July 1,
2017, a taxpayer is allowed no
more than $500,000 in total credits
attributable to the taxpayer’s own
investments and any credits the
taxpayer receives from a partnership,
S corporation, or other passthrough
entity that invested in an angel fund.
Line 9 - Workforce recruitment
credit
A tax credit is allowed to an employer
for using extraordinary recruitment
methods to recruit and hire employees
for hard-to-fill positions in
North Dakota. The credit is equal to
5% of the compensation paid during
the first 12 consecutive months to the
employee hired to fill a hard-to-fill
position. The credit is allowed in the
first tax year following the tax year in
which the employee completes the 12th
consecutive month of employment.

To be eligible for the credit, the
employer must pay an annual salary
that is at least 125% of North Dakota’s
average wage as published by Job
Service North Dakota and must
have employed all of the following
recruitment methods for at least
six months to fill a position for which
the credit is claimed:
	 1.	Contracted with a professional
recruiter for a fee.
	 2.	Advertised in a professional
trade journal, magazine, or other
publication directed at a particular
trade or profession.
	 3.	Provided employment information
on a website for a fee.
	 4.	Offered to pay a signing bonus,
moving expenses, or non-typical
fringe benefits.
The employer must provide a statement
to the employee hired to fill the hardto-fill position containing the following:
	 1.	Name of employer.
	 2.	Federal employer identification
number of employer.
	 3.	Statement that employer qualifies
for the workforce recruitment
credit based on the employee’s
employment.
	 4.	Amount of signing bonus, moving
expense, or non-typical fringe
benefit payment.
	 5.	Statement that the payment of the
bonus, moving expenses, or fringe
benefit may be deductible on the
employee’s North Dakota income
tax return.
If a taxpayer is unable to use all of a
credit first allowed in the 2023 tax year,
the taxpayer may carry the unused
credit amount over to subsequent
years’ returns for up to four tax years.
Line 9a. Enter the allowable credit
on this line. Include on this line a
workforce recruitment credit from
a North Dakota Schedule K-1. Also
include an unused credit carried over
from tax years 2017 and after.
Line 9b. Enter the number of eligible
employees whose first 12 months of
employment ended within the 2022 tax
year. Disregard this line if the credit is
from a North Dakota Schedule K-1.

Line 9c. For the eligible employees
included on line 9b, enter the total
compensation paid during the first
12 consecutive months of employment.
Disregard this line if the credit is from a
North Dakota Schedule K-1.
Line 10 - Geothermal energy device
credit
Complete this line only if (1) a
qualifying geothermal energy device
was installed on or after January 1,
2009, and before January 1, 2015,
(2) part or all of the allowable credit
was retained by the estate or trust,
and (3) the estate or trust is carrying
an unused credit attributable to the
installation over to the 2023 tax year.
Line 11 - Credit for wages paid to a
mobilized employee
Enter on this line the credit allowed for
continued payment of compensation
to an employee who is a member of
the National Guard or Reserve while
the employee is mobilized for federal
active military duty during the tax year.
Include on this line a credit for wages
paid to a mobilized employee from a
North Dakota Schedule K-1. For more
information, see Schedule ME. Attach
Schedule ME.
Line 12 - Endowment fund credit
A tax credit is allowed for making a
contribution to a qualified endowment
fund. For more information, see
Schedule QEC (for filers of Forms 38,
40, 58, and 60). Attach
Schedule QEC.
Note: If the estate or trust is carrying
over an unused endowment fund credit
from a prior tax year, enter it on the
2023 Schedule QEC, line 6.
Lines 12a and 12b. Enter on these
lines the applicable amounts from
Schedule QEC.
Lines 12c and 12d. Enter on these
lines an endowment credit and the
related contribution amount shown on
a North Dakota Schedule K-1 received
from a partnership, S corporation,
estate, or trust.

2023 Schedule 38-TC
SFN 28701 (12-2023), Page 6

Line 13 - Housing incentive fund
credit carryover
Enter on this line an unused housing
incentive fund credit carried over from
tax years 2011 through 2016.
Line 14a - Automation credit
If the estate or trust qualified for the
automation tax credit under N.D.C.C
§ 57-38-01.41, enter on this line the
amount of the credit shown on the
credit approval letter issued to the
estate or trust by the North Dakota
Office of State Tax Commissioner.
Include on this line an automation
credit from a North Dakota
Schedule K-1. The unused portion of
a 2023 credit may be carried over to
subsequent years’ returns for up to five
tax years.
Line 14b – Automation credit
carryover
The unused/unexpired portion of
the credit may be carried over to
subsequent years’ returns for up to five
tax years. Enter on this line the amount
of credit carried over from a prior year.
Lines 15 through 17 - Nonprofit
private school tax credits
Tax credits are allowed for making
charitable contributions to qualifying
nonprofit private primary schools, high
schools, and colleges located in North
Dakota. A separate credit is allowed
for each of the three categories of
school—primary school, high school,
and college. For each category of
school, the credit equals 50% of the
contributions made to all eligible
schools within the category.
For a list of the eligible schools
within each of the three categories
of schools, see the table on page 7
of these instructions.
For an estate or trust, the rules that
apply depend on whether the estate
or trust acquires the credit by making
a direct contribution to a qualifying
school or by holding an interest in a
passthrough entity that contributed to a
qualifying school. A passthrough entity
means an estate, trust, partnership,
S corporation, or a limited liability
company treated like a partnership or
S corporation.

Acquisition of credit by making
a direct contribution. If an estate
or trust acquires a credit by making
a direct contribution to a qualifying
school, the entire credit must be
allocated to its beneficiaries. Report
each beneficiary’s share of the allocated
credit on the beneficiary’s North Dakota
Schedule K-1.
To qualify, a contribution must be made
directly to, or specifically designated for
the exclusive use of, a qualifying school.
School network or organization. If
a contribution is made payable to the
account or fund of a school network or
organization that governs or benefits
multiple schools, the contribution
will qualify only if the estate or trust
specifically designates it for the use of
a qualifying school, and the network
or organization separately accounts for
the funds on behalf of that school. The
estate or trust must obtain a statement
from the network or organization that
identifies the qualifying school and
the amount contributed to it. If the
qualifying school falls into both the
primary and high school categories,
also see the next paragraph.
Schools in both primary and high
school categories. If a contribution is
made to a qualifying school that
provides education in one or more
grades in both the primary school
category (kindergarten through
8th grades) and the high school
category (9th through 12th grades),
a separate credit is allowed for the
portion of the contribution designated
for use within each school category. The
estate or trust must obtain a statement
from the qualifying school or the school
network or organization that identifies
the qualifying school and shows the
amount contributed within each
category of school. If the estate or trust
does not obtain a statement, one-half
of the total contribution will be deemed
to have been made to each category of
school.
Election. An estate or trust may elect,
on a contribution by contribution basis,
to treat a contribution as having been
made during the 2023 tax year if it
is made on or before the due date,
including extensions, for filing the 2023
Form 38. If this election is made for any
contribution, attach a statement to the
return containing the following:

	 1.	A statement indicating that the
election is being made.
	 2.	Name of qualifying school.
	 3.	Date of contribution.
	 4.	Amount of contribution.
Acquisition of credit by holding an
interest in a passthrough entity. If
an estate or trust acquires a credit by
holding an interest in a passthrough
entity, the rules that apply depend on
whether the estate or trust retains
the credit or allocates the credit to
its beneficiaries. In the case of a
credit received from a passthrough
entity, an estate or trust may retain
part or all of the credit. If the estate
or trust allocates any part of the
credit to its beneficiaries, report each
beneficiary’s share of the allocated
credit on the beneficiary’s North Dakota
Schedule K-1. If the estate or trust
retains any part of the credit, the
amount of the credit that the estate
or trust may claim within each school
category is limited to the lesser of the
following amounts:
	 	 The amount of the credit retained
by the estate or trust.
	 	 50% of the tax on Form 38,
page 1, line 1.
	 	 $2,500.
Completing lines 15 through 17.
Enter the credit for each school
category on the applicable line. Include
both the portion allocated to the
beneficiaries and the portion retained
by the estate or trust. In the case of
a credit received from a passthrough
entity (on North Dakota Schedule K-1)
that is retained by the estate or trust,
only include the amount of the credit
allowed after applying the limitations.
Line 18 - Credit for hiring an
individual with a developmental
disability or mental illness
A tax credit is available for employing
an individual with a developmental
disability or mental illness. To qualify,
an employer must apply for and obtain
certification from the North Dakota
Department of Human Services,
Vocational Rehabilitation Division, that
the individual has a severe disability,
is eligible for the agency’s services,
and requires customized or supported
employment to become employed.

2023 Schedule 38-TC
SFN 28701 (12-2023), Page 7
The credit is equal to 25% of the
wages paid to the individual during
the tax year, up to a maximum credit
of $1,500 per eligible employee.
Include on this line a developmentally
disabled/mentally ill employee credit
from a North Dakota Schedule K-1.
The total credit amount, including
any credit from a North Dakota
Schedule K-1, that a taxpayer may
claim in a tax year may not exceed
50% of the taxpayer’s tax liability
before credits.
Attach a copy of the certification
letter from Human Services. A
copy of the letter is not required if
the credit is from a North Dakota
Schedule K-1.
Line 19 – Maternity home, child
placement agency, or pregnancy
help center credit
A tax credit is allowed for
contributions to the following
organizations: (1) a child placing
agency licensed by the North Dakota
Department of Health and Human
Services (DHS), (2) a nonprofit
maternity home located in North
Dakota, or (3) a pregnancy help
center recognized by DHS.
The credit is equal to 100% of the
contribution and is limited to 50% of
a taxpayer’s tax liability. Enter on this
line the amount from Schedule MCP,
line 8. (Attach Schedule MCP)

The credit is available to corporations,
individuals, estates, trusts, and
passthrough entities. A tax credit
earned by a passthrough entity is
passed through and allowed to each
owner in proportion to their respective
interests in the passthrough
entity. Also include on this line
any credit from a North Dakota
Schedule K-1. (Attach North Dakota
Schedule K-1)
Unused credit. There is no
carryover provision to succeeding tax
years.
Line 20 – Apprentice tax credit
A tax credit is available for
compensation paid by a taxpayer
to an apprentice. The credit equals
10% of the stipend or salary paid to
a qualified apprentice employed in
North Dakota. The apprentice must be
in an apprenticeship program certified
by the U.S. Department of Labor or
be an electrical apprentice registered
under North Dakota law. The credit
is allowed for up to five apprentices
employed by the taxpayer at the
same time.
The credit allowed may not exceed a
taxpayer’s liability for tax. There is no
carryback or carryforward provision
for amounts exceeding a taxpayer’s
liability for the taxable year.

Attach a schedule listing the names
of the employees, their social security
number and wages paid. If the credit
is received through a passthrough
entity, attach a copy of the statement
received from the passthrough entity.
Lifetime credit limit. A taxpayer is
allowed no more than $3,000 in total
tax credits for eligible wages paid in
all tax years.
Line 20a. Enter the allowable
credit on this line. Also include on
this line an employer apprentice
program credit from a North Dakota
Schedule K-1.
Line 20b. Enter the number of
eligible apprentices employed during
the 2023 tax year. Disregard this
line if the credit is from a North
Dakota Schedule K-1.
Line 20c. Enter on this line the
total amount of wages, salaries, or
other compensation paid to qualified
apprentices employed during the
2023 tax year (as shown on their
2023 Form W-2’s). Disregard this
line if the credit is from a North
Dakota Schedule K-1.

2023 Schedule 38-TC
SFN 28701 (12-2023), Page 8
Qualified nonprofit private schools
(for Schedule 38-TC, lines 15 through 17)
For purposes of the credits on Schedule 38-TC, lines 15 through 17, the following
lists the qualifying schools in each school category. (Note: These lists are subject
to change.)

Primary Schools (Grades K through 8)
Anne Carlsen Center (Jamestown)
Bishop Ryan Catholic School (Minot)
Brentwood Adventist Christian School	
(Bismarck)
Capstone Classical Academy (Fargo)
Cathedral of the Holy Spirit Elementary
School (Bismarck)
Christ the King Catholic Montessori School
(Mandan)
Dakota Memorial School (Minot)
Dakota Montessori School (Fargo)
Forest River School (Fordville)
Full Circle Academy (Fargo)
Grace Lutheran Elementary School (Fargo)
Hillcrest SDA School (Jamestown)
Holy Family – St. Mary’s Elementary
School (Grand Forks)
Holy Spirit Elementary School (Fargo)
Hope Christian Academy (Dickinson)
Invitation Hill Adventist School 	
(Dickinson)
Johnson Corners Christian Academy
	 (Watford City)
Little Flower Elementary School (Rugby)
Martin Luther School (Bismarck)
Nativity Elementary School (Fargo)
New Testament Baptist Christian School
(Larimore)
Oak Grove Lutheran Elementary School
	 (Fargo)
Our Redeemer’s Christian School
	 (Minot)
Prairie Learning Education Center
	 (Raleigh)
Prairie Voyager Adventist School
	 (Grand Forks)

School of the Holy Family (Mandan)
Shanley High-Sullivan Middle School
	 (Fargo)
SonShine Elementary (Minot)
Shiloh Christian School (Bismarck)
St. Alphonsus Elementary School
	 (Langdon)
St. Anne Elementary School (Bismarck)
St. Ann’s Catholic School (Belcourt)
St. Bernard Mission School
	 (Fort Yates)
St. Catherine Elementary School
	 (Valley City)
St. John’s Academy (Jamestown)
St. John’s Elementary School (Wahpeton)
St. Joseph Elementary School (Mandan)
St. Joseph Elementary School
	 (Devils Lake)
St. Joseph’s Elementary School (Williston)
St. Mary’s Academy (Bismarck)
St. Mary’s Elementary School (Bismarck)
St. Michael’s Elementary School
	 (Grand Forks)
St. Monica’s Montessori (Fargo)
The Innovation School (Bismarck)
Trinity Elementary East School
	 (Dickinson)
Trinity Elementary North School
	 (Dickinson)
Trinity Elementaryy School (West Fargo)
Trinity Elementary West School
	 (Dickinson)
Trinity Jr/High School (Dickinson)
Valley City Christian School (Valley City)
Victory Christian School (Jamestown)
Williston Trinity Christian School
	 (Williston)

High Schools (Grades 9 through 12)
Anne Carlsen Center (Jamestown)
Bishop Ryan Catholic School (Minot)
Dakota Adventist Academy (Bismarck)
Dakota Memorial School (Minot)
Hope Christian Academy (Dickinson)
Johnson Corners Christian Academy
(Watford City)
New Testament Baptist Christian
School (Larimore)
Oak Grove Lutheran Middle/High
School (Fargo)

Our Redeemer’s Christian School
(Minot)
Prairie Learning Education Center
(Raleigh)
School of the Holy Family (Mandan)
Shanley High-Sullivan Middle School
(Fargo)
Shiloh Christian School (Bismarck)
St. Mary’s Central High School
(Bismarck)
Trinity Jr/High School (Dickinson)
Williston Trinity Christian School
(Williston)

Colleges (Education above 12th grade)
Jamestown College (Jamestown)
Trinity Bible College (Ellendale)
Turtle Mountain Community College
(Belcourt)

United Tribes Technical College
(Bismarck)
University of Mary (Bismarck)
ND Independent College Fund
(Bismarck)