ND HB1510

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

Credit is refundable, meaning excess amounts above the taxpayer's state income tax liability are refunded to the taxpayer.

Part-time resident taxpayers receive the credit multiplied by a fraction based on their federal adjusted gross income during the period of residence compared to the full taxable year.

Tax commissioner must annually alert potentially eligible resident taxpayers about the credit and provide an application for eligibility determination, using data from federal and state tax sources.

Tax commissioner reports annual expenditures for the refundable portion of the credit to the Department of Human Services, which may count these amounts toward federal temporary assistance for needy families block grant maintenance of effort requirements; effective for taxable years beginning after December 31, 2018.