ND HB1421

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 prorated credit calculated by multiplying the credit by a fraction of their federal adjusted gross income for the residence period divided by total federal adjusted gross income for the taxable year.

Tax commissioner must annually alert potentially eligible resident taxpayers and may use federal data and state income tax returns to identify them, providing applications for credit eligibility determination.

Tax commissioner annually reports credit expenditures to the Department of Human Services, which may count refundable credit costs toward the state's Temporary Assistance for Needy Families block grant maintenance of effort requirement.

Effective for taxable years beginning after December 31, 2020.