ND HB1381

Resident taxpayers receive a state income tax credit equal to 25 percent of their federal earned income credit claimed under Section 32 of the Internal Revenue Code.

Credit is refundable if it exceeds the taxpayer's state income tax liability, with excess amounts refunded to the taxpayer.

Part-time resident taxpayers receive a proportionally reduced credit multiplied by a fraction of their federal adjusted gross income for the period of residence.

Tax commissioner must annually alert potentially eligible resident taxpayers about the credit and provide applications, using data from federal and state tax sources to identify candidates.

Tax commissioner reports annual state general fund expenditures from the refundable credit portion to the Department of Human Services, which may count these toward temporary assistance for needy families block grant maintenance of effort requirements.