North Dakota Code 57-38-01.16 – Income tax credit for employment of individuals with developmental disabilities or severe mental illness
1. A taxpayer filing an income tax return under this chapter may claim a credit against the tax liability imposed under section 57-38-30 or section 57-38-30.3 for a portion of the wages paid to an employee with a developmental disability or a severe mental illness.
Terms Used In North Dakota Code 57-38-01.16
- Contract: A legal written agreement that becomes binding when signed.
- Credits: means and includes every claim and demand for money or other valuable thing, and every annuity or sum of money receivable at stated periods, due or to become due, and all claims and demands secured by deeds or mortgages, due or to become due. See North Dakota Code 57-02-01
- Individual: means a human being. See North Dakota Code 1-01-49
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
- year: means twelve consecutive months. See North Dakota Code 1-01-33
2. The credit allowed under this section equals twenty-five percent of up to six thousand dollars in wages paid annually by the taxpayer for each employee with a developmental disability or severe mental illness, if the department of health and human services’ vocational rehabilitation division determines the individual has a most significant disability, is eligible for services, and requires customized employment or supported employment to obtain competitive integrated employment.
3. Only wages actually paid during the taxpayer’s taxable year may be considered for purposes of this section. An employee of a subcontractor is considered an employee of the contractor to the extent of any wages paid under the contract.
4. The total of credits allowed under this section may not exceed fifty percent of the taxpayer’s liability under this chapter.
5. A taxpayer shall apply, on a form and in the manner prescribed by the department of health and human services’ vocational rehabilitation division, for a determination of whether an employee meets the requirements under subsection 2. If an employee meets the requirements, a letter of certification containing the names of the taxpayer and the qualifying employee must be issued to the taxpayer.
6. A taxpayer claiming a credit under this section shall include a copy of the certification letter received from the department of health and human services’ vocational rehabilitation division with the taxpayer’s return filed under this chapter for each taxable year the credit is claimed.
7. A passthrough entity entitled to the credit under this section must be considered to be the taxpayer for purposes of calculating the credit. The amount of the allowable credit must be determined at the passthrough entity level. 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. An individual taxpayer may take the credit passed through under this section against the individual’s state income tax liability under section 57-38-30.3.