House Bill 1462 Summary

• Allows taxpayers a nonrefundable income tax credit equal to 50% of charitable contributions made to nonprofit private higher education institutions located in North Dakota or the North Dakota independent college fund, limited to 20% of total income tax or $2,500, whichever is less.

• Allows taxpayers a nonrefundable income tax credit equal to 50% of charitable contributions made directly to nonprofit private secondary education institutions (grades 9-12) located in North Dakota, with the same $2,500 or 20% of income tax limitation.

• Allows taxpayers a nonrefundable income tax credit equal to 50% of charitable contributions made directly to nonprofit private primary education institutions (kindergarten-grade 8) located in North Dakota, subject to the same limitations.

• Permits passthrough entities (partnerships, S-corporations, LLCs) to claim the credit at the entity level, with the credit passed through to partners, shareholders, or members in proportion to their ownership interests.

• Makes the act effective for taxable years beginning after December 31, 2014.