North Dakota Administrative Code
Title 81 - Tax Commissioner
Article 81-03 - Income Taxes and Privilege Taxes Based on Income
Chapter 81-03-02.1 - Income Tax on Individuals, Estates, Trusts, and Fiduciaries
Section 81-03-02.1-12.1 - Agricultural commodity processing facility investment credit - Limitations on credit - Carryover

1. The credit must first be credited against the taxpayer's income tax liability for the taxpayer's taxable year in which the investment is received by the qualified business. "Received" means that the qualified business has exclusive access to the funds.

2. For purposes of applying the annual limitation on the total amount of credits allowed for investments in all qualified business under North Dakota Century Code section 57-38.6-03, the total amount of investments and related credits must be determined on a calendar year basis.

3. For purposes of applying subsection 3 of North Dakota Century Code section 57-38.6-03, the amount of the credit which may be carried forward from the taxpayer's taxable year in which the related investment was made is the amount of the credit not allowed because of subsection 2 of North Dakota Century Code section 57-38.6-03.

4. If a partnership makes an investment in a qualified business, and if the taxable year of the partnership differs from the taxable year of the partner, the amount of credit allocated to the partner under subsection 4 of North Dakota Century Code section 57-38.6-03 must first be credited in the partner's taxable year in which the partnership's taxable year ends.

5. If a taxpayer makes an investment in a qualified business and then sells the investment back to the qualified business within three years of making the investment, the credit must be disallowed. If a taxpayer makes an investment in a qualified business and then sells the investment to a second taxpayer, the credit attributable to the investment must be allowed to the first taxpayer provided the investment is held by the qualified business for three years, and no credit may be allowed to the second taxpayer.