North Dakota Tax Credits

Tax Credits
Schedule ND-1 TC - Tax Credits (2023)
TAX CREDITS

OFFICE OF STATE TAX COMMISSIONER

Schedule ND-1TC

SFN 28742 (12-2023)

2023

Attach to Form ND-1
Your Name As Shown On Form ND-1

Your Social Security Number

Important! All taxpayers must read this section. If you are claiming a credit on line 2, 3, 4, 6, 7, 8a, 9a, 9b, 10, 11a,
17a, or 21 of this schedule, you must complete this section. See "Property tax clearance" in instructions for details.

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Do you (or does your spouse, if filing jointly) 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 you or your spouse holds a 50% or more interest in real property:

__________________________________________________________________________________
Attach to Form ND-1 the completed Property Tax Clearance Record obtained from each county identified above.
1. Family member care tax credit (Attach Schedule ND-1FC)

(S2) 1

2. Renaissance zone tax credit (Attach Schedule RZ)

(S3) 2

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

(NE) 3

4. Seed capital investment tax credit (Attach documentation)

(NG) 4

5. Planned gift tax credit (Attach Schedule ND-1PG)

(NM) 5

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

(NN) 6

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

(NO) 7

8. a. Employer internship program tax credit (Attach documentation)
b. Number of eligible interns employed in 2023

(NQ) 8b

c. Total compensation paid to eligible interns in 2023

(NR) 8c

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

(NP) 8a

(NV) 9a

b. Research expense tax credit purchased from another taxpayer in 2023

(NW) 9b

10. 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)
(NX) 10
11. a. Workforce recruitment tax credit (Attach documentation)
b. Number of eligible employees whose 12th
month of employment ended in 2022 tax year

(OA) 11a

(OB) 11b

c. Total compensation paid for first 12 months of employment to eligible employees included on line 11b
(OC) 11c
12. 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

(OD) 12a

b. Amount of unused credit carryover

(OE) 12b

13. Tax credit for wages paid to a mobilized employee (Attach Schedule ME or ND Schedule K-1)

(OF) 13

14. Partnership plan long-term care insurance tax credit (Attach documentation)

(OG) 14

15. a. Endowment fund tax credit from Schedule ND-1QEC, line 8 (Attach Schedule ND-1QEC)
b. Endowment fund tax credit from ND Schedule K-1 (Attach ND Schedule K-1)
c. Contribution amount from ND Schedule K-1

(OR) 15c

(OK) 15a
(NY) 15b

No

2023 Schedule ND-1TC
SFN 28742 (12-2023), Page 2

16. Housing incentive fund tax credit carryover (Attach documentation)
17.

(OL) 16

a. Automation tax credit (Attach documentation)

(OS) 17a

b. Automation tax credit carryover (Attach documentation)

(OM) 17b

18. Nonprofit private primary school tax credit from Schedule ND-1PSC

(ON) 18

19. Nonprofit private high school tax credit from Schedule ND-1PSC

(OO) 19

20. Nonprofit private college tax credit from Schedule ND-1PSC

(OP) 20

21. Angel investor investment tax credit - only for credits attributable to investments
made in qualified businesses by angel funds organized and certified after June 30, 2017
(Attach documentation)

(OQ) 21

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

(OT) 22

23. Adoption tax credit (Attach Schedule ND-1AC)

(OU) 23

24. Maternity home, child placing agency, or pregnancy help center tax credit
(Attach Schedule MCP)

(OV) 24

25.

(OW) 25a

a. Apprentice tax credit (Attach documentation)
b. Number of eligible apprentices employed in 2023

(OX) 25b

c. Total compensation paid to eligible apprentices in
2023

(OY) 25c

26. Total other credits. Add lines 1 through 8a, 9a through 11a, 12b through 15b and
16 through 25a. Enter the result on Form ND-1, line 23

(NZ) 26

2023 Schedule ND-1TC
SFN 28742 (12-2023), Page 3

General instructions

Specific line instructions

If you are claiming any of the income
tax credits shown on Schedule ND-1TC,
you must complete and attach it to
Form ND-1.

Line 1 - Family member care credit
A tax credit is allowed for paying
qualifying expenses for the care of a
disabled or elderly family member. See
Schedule ND-1FC for details. Attach
Schedule ND-1FC.

Attach supporting documentation.
If the instructions do not specify an
officially-prescribed schedule to be
attached, you must attach your own
documentation to support your
eligibility for the credit and how you
calculated the credit, including an
unused credit carried over from another
tax year.
Property Tax Clearance
North Dakota Century Code
§ 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 the schedule.
If you are claiming any of the specified
credits, you must complete the property
tax clearance section at the top of
the schedule. If you are required to
attach a property tax clearance record
from a county, obtain one by using the
form Property Tax Clearance Record
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.

Line 2 - Renaissance zone credit
Income tax credits are allowed under
the North Dakota Renaissance Zone
Program for qualifying purchases,
improvements, or investments made
in a state-approved zone. For details,
see the Renaissance Zone Act Tax
Incentives Guideline and Schedule RZ.
Attach Schedule RZ.
Line 3 - Ag commodity processing
facility investment credit
If you made a qualified investment in
a business certified for the agricultural
commodity processing facility
investment credit program, enter your
allowable credit on this line. Attach a
copy of the Ag Commodity Processing
Facility Investment Reporting Form
that the certified business is required
to provide to you at the time you made
your investment.
For qualified investments that you
made directly to a certified business
during the 2023 tax year, the credit
is equal to 30% of the total amount
invested. Include on this line an
agricultural commodity investment
tax credit from a North Dakota
Schedule K-1. The unused portion of a
credit based on a 2023 investment may
be carried over to subsequent years’
returns for up to 10 tax years.
Unused credit carryover. Include on
this line an unused credit carried over
from a prior tax year.
Do not include on this line an unused
credit based on an investment made in
tax years prior to 2013. For an unused
credit based on investments made
in tax years 2013 through 2022, the
amount you may use is subject to the
annual and lifetime limits—see below.
Annual limit. Of the total credits
available, including unused credit
carryovers from tax years 2013 and
after, you may use no more than
$50,000 on your 2023 return.

Lifetime credit limit. You are allowed
no more than $250,000 in total tax
credits for investments made in tax
years 2005 and after.
Line 4 - Seed capital investment
credit
If you made a qualified investment in
a business certified for the seed capital
investment credit program, enter your
allowable credit on this line. Attach
a copy of the Qualified Seed Capital
Business Investment Reporting Form
that the certified business is required
to provide to you at the time you made
your investment.
For qualified investments that you
made directly to a certified business
during the 2023 tax year, the credit
is equal to 45% of the total amount
invested. Include on this line a seed
capital investment tax credit from
a North Dakota Schedule K-1. The
unused portion of a credit based on a
2023 investment may be carried over
to subsequent years’ returns for up to
four tax years.
Unused credit carryover. Include on
this line an unused credit carried over
from a prior tax year. For an unused
credit based on investments made
in tax years 2019 through 2022, the
amount you may use is subject to the
annual limit—see below. Do not include
on this line any unused credits based
on investments made in tax years prior
to 2019.
Annual limit. Of the total credits
available (including unused credit
carryovers from tax years 2019 and
after), you may use no more than
$112,500 on your 2023 return.
Line 5 - Planned gift credit
A tax credit is allowed for making
a charitable contribution under a
qualifying planned gift arrangement
to a qualified nonprofit organization
or qualified endowment fund in North
Dakota. See Schedule ND-1PG for
details. Attach Schedule ND‑1PG.
Line 6 - Biodiesel or green diesel
fuel blending credit
A tax credit is allowed to a North
Dakota licensed fuel supplier
(wholesaler) for blending biodiesel
or green diesel fuel in North Dakota

2023 Schedule ND-1TC
SFN 28742 (12-2023), Page 4

with a minimum 5% blend (“B5”)
that meets ASTM specifications. The
credit is equal to five cents per gallon
blended. Include on this line a biodiesel
or green diesel fuel credit from a North
Dakota Schedule K-1. The unused
portion of a credit based on qualified
blending during the 2023 tax year may
be carried over to subsequent years’
returns for up to five tax years.
Unused credit carryover. Include on
this line an unused credit carried over
from tax years 2018 and after.
Line 7 - 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. The
credit is equal to 10% of the costs to
adapt or add equipment to the seller’s
facility in North Dakota to enable it
to sell biodiesel or green diesel with
a minimum 2% blend (“B2”) that
meets ASTM specifications. 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. Include on this line
a biodiesel or green diesel fuel 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.
Unused credit carryover. Include on
this line an unused credit carried over
from tax years 2018 and after.
Lifetime credit limit. A taxpayer is
allowed no more than $50,000 in total
tax credits for eligible costs incurred in
all tax years.
Line 8 - Employer internship
program credit
A tax credit is allowed to a taxpayer
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. A taxpayer is
allowed no more than $3,000 in total
tax credits for eligible wages paid in all
tax years.
Line 8a. Enter the allowable credit
on this line. Include on this line an
employer internship program credit
from a North Dakota Schedule K-1.

		 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.

Line 8b. 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.

“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.

Line 8c. 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.

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.

Line 9 - Research expense credit
A tax credit is allowed for qualified
research 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 tax 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
election. For tax years beginning on or
after January 1, 2020, 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:

Unused credit. The unused portion
of a credit based on qualified research
during the 2023 tax year must be
carried back to the three previous tax
years’ returns and then forward to
subsequent years’ returns for up to
15 tax years. It 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 you have an
unused research credit and you obtain
certification as a qualified research
and development company, you may
elect to sell, assign, or transfer the
unused credit to another taxpayer.
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 9a. Enter the allowable credit on
this line. Include on this line an unused
credit carried over from a prior tax
year and a research credit from a North
Dakota Schedule K-1. 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 9b.

2023 Schedule ND-1TC
SFN 28742 (12-2023), Page 5

Line 9b. Enter on this line a research
credit obtained from a qualified
research and development company
through a sale, assignment, or transfer
in 2023.
Line 10 - Angel fund investment
credit carryover
Important! This line is only for
unused credits 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 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, you are allowed no more than
$500,000 in total credits from your
own investments plus any credits
you receive from a partnership,
S corporation, or other passthrough
entity that invested in an angel fund. If
you are married, you and your spouse
are considered one taxpayer for this
purpose.
Line 11 - 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 annual 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 web site for a fee;
and (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 payment, or
non-typical fringe benefit payment;
and (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.
The unused portion of a credit first
allowed in the 2023 tax year may
be carried over to subsequent years’
returns for up to five tax years.
Line 11a. Enter the allowable credit
on this line. Include on this line an
unused credit carried over from tax
years 2018 and after and a workforce
recruitment credit from a North Dakota
Schedule K-1.
Line 11b. 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 11c. For the eligible employees
included on line 11b, 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 12 - Geothermal energy device
credit
Complete this line only if you installed
a qualifying geothermal energy device
on or after January 1, 2009, and before
January 1, 2015, and an unused tax
credit attributable to the installation is
being carried over to the 2023 tax year.
Line 13 - Credit for wages paid to a
mobilized employee
If you have an employee who is a
member of the National Guard or
Reserve, and the employee was

mobilized for federal active military
duty during the tax year, you may be
eligible for a tax credit if you continued
to pay part or all of the employee’s
wages during the period of mobilization.
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 14 - Partnership plan longterm care insurance credit
You are allowed a tax credit for
premiums you pay for a partnership
plan long-term care insurance policy
that covers you or your spouse. To
qualify, you must be a North Dakota
resident at the time you pay the
premiums.
A partnership plan policy is a special
type of long-term care insurance
policy that meets specific consumer
protection and federal income tax law
requirements, is recognized by North
Dakota for Medicaid benefit purposes,
and provides the proper inflation
protection based on the insured
individual’s age at time of purchase.
An insurance company is required to
provide you with a statement certifying
the policy as a partnership plan policy
at time of issuance. If you are filing
a paper return, attach copies of the
certification statement and the first
page of the policy which identifies the
insurance company and the name(s)
of the insured. If you are electronically
filing your return, you must be able to
provide these copies upon request by
the Office of State Tax Commissioner.
Important: There are long-term
care insurance policies that ARE
NOT partnership plan policies
for which the premiums are not
eligible for this credit. You must
look for the certification statement
in your policy, or contact your
insurance company or the North
Dakota Insurance Department for
assistance in verifying your policy’s
eligibility.
The credit is equal to the premiums
you paid during the tax year, up to a
maximum credit of $250 (or $500, if
both you and your spouse are insured).

2023 Schedule ND-1TC
SFN 28742 (12-2023), Page 6

Line 15 - Endowment fund credit
A tax credit is allowed for making
a qualifying charitable contribution
to a qualified endowment fund. See
Schedule ND-1QEC for details.
Note: If you have an unused
endowment fund credit carried over
from a prior year’s Schedule ND-1QEC,
it should be entered on the 2023
Schedule ND‑1QEC, line 6. Attach
Schedule ND-1QEC.
Line 15a. Enter on this line the credit
amount from Schedule ND-1QEC,
line 8.
Line 15b. If you own an interest in a
partnership or S corporation, or you are
the beneficiary of an estate or trust,
enter on this line an endowment fund
credit, if any, from a North Dakota
Schedule K-1 received from that entity.
Line 15c. If you entered an amount
on line 15b, enter on this line the
associated contribution amount from
the North Dakota Schedule K-1 received
from the entity.
Line 16 - Housing incentive fund
credit carryover
Enter on this line an unused housing
incentive fund credit carried over from
tax years 2012 through 2016.
Line 17a - Automation tax credit
If you 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 you by the
North Dakota Office of State Tax
Commissioner. Include on this line an
automation credit from a North Dakota
Schedule K-1.
Line 17b - Automation tax 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 18 through 20 - 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 schools, high schools,
and colleges. Enter the credit(s) from
Schedule ND-1PSC on the applicable
line(s) of Schedule ND-1TC. For
details and a list of eligible schools,
see Schedule ND-1PSC. Attach
Schedule ND-1PSC.
Line 21 - Angel investor investment
credit
Important! This line is only for
credits attributable to investments
made in qualified businesses by
angel funds organized and certified
on or after July 1, 2017.
Enter on this line the amount of your
allowable angel investor investment
credit. Your allowable credit is equal to
the smaller of (1) $45,000 or (2) the
sum of the following:
		 Angel investor credit from a
Participating Angel Investor
Investment Statement, on which
the investment date falls within
your 2023 tax year. Multiply
the investment amount by the
applicable credit rate shown on
the statement. If you receive more
than one statement, calculate the
credit for each statement and add
the separately calculated credit
amounts.
		 Angel investor investment credit
from a North Dakota Schedule K-1.
If the sum of all angel investor credits
for the 2023 tax year exceed $45,000,
the excess credits are not allowed in
any tax year. Do not include any credits
reportable on line 10 of this schedule in
this calculation.
If you are unable to use all of your
allowable credit for the 2023 tax year,
the unused portion may be carried over
and used on subsequent tax years’
returns for up to 5 tax years.
Lifetime credit limit. For qualified
investments made in qualified
businesses on or after July 1, 2017, you
are allowed no more than $500,000 in
total credits from your own investments
plus any angel investor credits you
receive from a passthrough entity in
which you have an ownership interest.

Line 22 - 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,
you 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. 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 23 – Adoption tax credit
A North Dakota income tax credit is
allowable based on the federal income
tax credit attributable to qualified
adoption expenses incurred under
I.R.C. 26 Ch. 23. Qualified federal
adoption expenses and the federal
tax credit are reported on federal
Form 8839.
The North Dakota credit is 10% of the
federal adoption credit allowed against
federal income tax for the tax year.
The credit is limited to 50% of the
individual’s North Dakota income tax
liability (before tax credits). Attach
Schedule ND-1AC.
The unused portion of state credit may
be carried over and used on subsequent
tax years’ returns for up to three years.
Line 24 – Maternity home, child
placing agency, or pregnancy help
center tax credit
A tax credit is allowed for contributions
to the following organizations: (1) a
child placing agency licensed by the

2023 Schedule ND-1TC
SFN 28742 (12-2023), Page 7

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 the taxpayer’s
contribution. The credit may not
exceed 50% of the taxpayer’s
tax liability (before tax credits).
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 25 – 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.
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 25a. Enter the allowable credit
on this line. Also include on this
line an employer apprenticeship
program credit from a North Dakota
Schedule K-1.
Line 25b. 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 25c. Enter the total amount
of wages, salaries, or other
compensation paid to eligible
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.