ND HB1405

Increases the income tax credit for employers hiring employees with developmental disabilities or severe mental illness from 5% to 25% of up to $6,000 in annual wages paid per qualifying employee.

Requires the Department of Human Services' vocational rehabilitation division to certify that employees have a most significant disability, are eligible for services, and require customized or supported employment to obtain competitive integrated employment.

Limits total certification to no more than 100 employees, processed in order of application receipt, and caps total credits at 50% of the taxpayer's state income tax liability.

Allows passthrough entities (partnerships, corporations, LLCs) to claim the credit at the entity level and pass it through to partners, shareholders, or members in proportion to their ownership interests.

Effective for the first two taxable years beginning after December 31, 2020, then expires.