ND SB2295

Allows farmers' cooperatives receiving new or expanding business income tax exemptions under chapter 40-57.1 to elect passing the exemption through to their patrons instead of claiming it themselves.

The passthrough election must be made on the cooperative's timely filed income tax return for the year the exemption begins and is irrevocable for the entire duration of the exemption.

Exemption amounts passed to each patron are determined by their proportionate share of patronage activity and must be separately identified from non-project income in written notices of allocation.

Cooperatives must transmit a list of patrons and their allocated exemption amounts to the tax commissioner within thirty days of issuing written notices of allocation, including patron name, address, federal identification number, and exemption amount.

The Act is effective for projects approved after December 31, 2012.