ND HB1045

Establishes two separate angel fund investment tax credit regimes: 45% credit for investments made before July 1, 2017, in angel funds; and a new 35% credit (in-state) or 25% credit (out-of-state) for investments made after June 30, 2017, by certified angel funds in qualified businesses.

Limits annual credits to $45,000 per taxpayer and lifetime credits to $500,000 per individual or entity; investors in one angel fund may not receive more than $5 million in aggregate credits during the fund's life.

Requires angel funds to have at least 6 accredited investors, $500,000 in commitments, invest in portfolio of early-stage or mid-stage private companies (revenues up to $2 million or $2-$10 million respectively), and be headquartered in North Dakota; excludes real estate investments.

Imposes $1,000 per month penalty on angel funds failing to file required investment reports and $10,000 penalty for knowingly making false statements in applications or reports; allows revocation of certification and disallowance of credits for noncompliance.

Effective for taxable years beginning after December 31, 2016; permits credit carryforward for 7 years (old regime) or 5 years (new regime) if credit exceeds tax liability.