North Dakota Qualified Endowment Fund Tax Credit

Qualified Endowment Fund Tax Credit
Schedule QEC - Qualified Endowment Fund Tax Credit For Businesses And Fiduciaries (2023)
QUALIFIED ENDOWMENT FUND TAX CREDIT
FOR BUSINESSES AND FIDUCIARIES
OFFICE OF STATE TAX COMMISSIONER

Schedule QEC

2023

SFN 28700 (12-2023)

Attach to Form 38,
40, 58 OR 60
Taxpayer's Name As Shown On Return



Federal Employer Identification Number

Estates, trusts and C corporations: If only carrying over an unused credit from the 2020, 2021 or 2022 tax year,
skip lines 1 through 5 and go to line 6.

Part 1 Qualified endowment fund information
1. Enter the name, address, and the total amount contributed for each qualified endowment fund during the 2023 tax
year. If the qualified nonprofit organization holding the qualified endowment fund is a border state organization, fill in
the circle in column (c) - see the instructions for more information.

(a)
Name of qualified
endowment fund



(b)
Address
(number, street, city, state, ZIP code)

(d)
Total amount
contributed

(c)
Border state
organization

Attach a copy of a letter or other documentation received from each qualified endowment fund
containing name of the fund, the date and amount of the contribution(s), and a statement that
it meets the qualified endowment fund criteria under N.D.C.C. § 57-38-01.21.

Part 2 Credit
2. Total amount contributed in 2023 tax year. Add the amounts in column (d) of line 1

2

3. Maximum contribution eligible for credit

3

4. Amount of contribution eligible for credit. Enter smaller of line 2 or line 3

4

Estates, trusts and C corporations. The amount on line 4 of this schedule must be added to North
Dakota taxable income to the extent it reduced federal taxable income. See the instructions to Form 38,
Tax Computation Schedule, line 2, or Form 40, Schedule SA, line 5.
Partnerships and S corporations. Enter the amount from line 4 of this schedule on Form 58,
Schedule K, line 14b, or Form 60, Schedule K, line 11b.
5. Credit on current year contributions. Multiply line 4 by 40% (.40)

5

6. Estates, trusts and C corporations only. Enter amount of an unused credit, if any, carried over
from a prior tax year. For a partnership or S corporation, enter -0-

6

7. Total available credit. Add lines 5 and 6. Enter the amount from this line on the applicable return
as instructed below

7

If filing:

Enter the amount from line 7 of this schedule on:

Form 38
Form 40

Schedule 38-TC, line 12a
Form 40, Schedule TC, line 15, or on Schedule CR, Part III, line 15

Form 58

Form 58, Schedule K, line 14a

Form 60

Form 60, Schedule K, line 11a

25,000

2023 Schedule QEC Instructions
SFN 28700 (12-2023), Page 2

General instructions

A partnership, corporation, estate, or
trust is allowed an income tax credit
for making a charitable contribution to
a qualified endowment fund.
Qualified endowment fund. A
qualified endowment fund means
a permanent, irrevocable fund that
meets all of the following criteria:
	 1.	It is held by a qualified nonprofit
organization (as defined below).
	 2.	It is comprised of cash, securities,
mutual funds, or other investment
assets.
	 3.	It is established for a specific
religious, educational, or other
charitable purpose.
	 4.	It may expend only the income
generated by, or the increase in
value of, the assets contributed to
it.
Qualified nonprofit organization. A
qualified nonprofit organization means
an organization that meets either of
the following sets of criteria:
		 North Dakota-based
organization. An organization is
a qualified nonprofit organization if
it:
	

1.	Is incorporated in North Dakota,
or has an established location in
North Dakota;

	

2.	Is tax-exempt under I.R.C.
§ 501(c); and

	

3.	Is a charitable donee
organization as defined under
I.R.C. § 170.

		 Border state organization. An
organization is a qualified nonprofit
organization if it:
	

1.	Is tax-exempt under I.R.C.
§ 501(c);

	

2.	Is a charitable donee
organization as defined under
I.R.C. § 170;

	

3.	Supports or benefits a hospital,
nursing home, or medical center,
or any combination of these;

	

4.	Is located outside North Dakota;
and

	

5.	Is located within five miles
of a North Dakota city with a
population of 5,000 or more that
does not have a hospital.

No double benefit. A charitable
contribution that is the basis for this
credit may not be used as the basis for
any other tax credit allowed for income
tax purposes.
Also, if the charitable contribution is
claimed as a deduction for federal
income tax purposes, the contribution
must be added to North Dakota taxable
income to the extent it reduced the
taxpayer’s federal taxable income. This
applies to any tax year in which the
contribution reduced the taxpayer’s
federal taxable income. See line 4 on
form.
Maximum credit. The maximum
credit allowed to an estate, trust,
partnership, or corporation on the
direct contributions it makes during a
tax year is limited to $10,000.
Unused credit carryover. The unused
portion of an otherwise allowable
credit may be carried over and used
on subsequent years’ returns for up to
three tax years.

Estates and trusts. For an estate
or trust, the allowable credit is
determined at the estate or trust
entity level. The allowable credit must
be allocated to the estate or trust
and its beneficiaries in proportion to
the amount of the estate’s or trust’s
income allocated among them.
Partnerships and S corporations.
For a partnership or S corporation,
the allowable credit is determined
at the partnership or S corporation
entity level and passed through to its
partners or shareholders based on their
respective interests in the entity.

Specific line instructions
Line 1

In column c, fill in the circle if the
qualified nonprofit organization
holding the endowment fund is a
border state organization—see “Border
state organization” earlier in these
instructions.

Line 6

For an estate, trust, or C corporation,
enter the allowable portion of any
unused endowment fund credits
attributable to contributions made in
the 2020 through 2022 tax years that
are being carried over to the 2023
tax year. For an estate or trust, this
only applies to the estate’s or trust’s
allocable portion of the endowment
fund credits. For a partnership or
S corporation, enter zero on this line.