ND HB1111

Amends North Dakota Century Code section 57-38-30.5 to allow taxpayers to elect the alternative simplified research credit calculation method under Internal Revenue Code section 41(c)(5).

Alternative simplified credit rates are 17.5% of the first $100,000 of alternative excess research and development expenses plus 5.6% of amounts exceeding $100,000, or 7.5% plus 2.4% respectively if taxpayer had zero qualified research expenses in any of the three preceding years.

"Alternative excess research and development" is defined as qualified research expenses exceeding 50% of average qualified research expenses from the three preceding taxable years.

Election to calculate credit under subsections 1, 2, 3, or 4 is binding for the taxable year made, and taxpayers claiming credits for tax years before January 1, 2019 cannot file amended returns to use the alternative simplified method.

Effective for taxable years beginning after December 31, 2018.