ND HB1405

Resident taxpayers receive a state income tax credit equal to 10 percent of their federal earned income credit claimed under section 32 of the Internal Revenue Code.

Part-time resident taxpayers receive the credit multiplied by a fraction using their federal adjusted gross income for the period of residence divided by their total federal adjusted gross income for the taxable year.

Any credit amount exceeding a taxpayer's state income tax liability is refunded to the taxpayer.

The Tax Commissioner must provide information to the Department of Human Services regarding state general fund expenditures for the refundable portion of the credit, which may count toward the temporary assistance for needy families block grant maintenance of effort requirement under federal law.

The Act is effective for taxable years beginning after December 31, 2014.