ND HB1247

Reduces corporate income tax rates on taxable income in three brackets: first $25,000 taxed at 2.84%, income from $25,000-$50,000 taxed at 2.10%, and income over $50,000 taxed at 2.56%.

Significantly reduces individual income tax rates across all filing statuses (single, married filing jointly, married filing separately, head of household, and estates/trusts) by roughly 60%, with rates reduced from 1.84%-4.86% to 0.74%-1.94%.

Adjusts income bracket thresholds upward for individual tax schedules across all filing statuses to reflect new rate structures.

Creates a new deduction allowing individuals to reduce taxable income by 60% of income received from passthrough entities (such as partnerships, S-corporations, and LLCs) that is allocated to North Dakota.

Effective for taxable years beginning after December 31, 2010, with tax commissioner to adjust income brackets annually for cost-of-living increases beginning in 2010.