ND SB2288

Taxpayers receive a tax credit equal to 75% of contributions made to charitable scholarship-granting organizations providing educational scholarships to eligible students in North Dakota.

Credit is claimed in the year the contribution is made, cannot exceed the taxpayer's tax liability, and excess credit may be carried forward up to 5 years.

Initial aggregate credit limit of $3 million in calendar year 2021, which increases by 10% annually if the maximum is claimed, with credits approved on a first-come, first-served basis.

Scholarship-granting organizations must be 501(c)(3) charities that award scholarships to low-income eligible students through June 30 each year, maintain 90% of contributions as scholarship funds, and submit annual financial reports.

Eligible students must be North Dakota residents aged 5-19 enrolled in accredited nonprofit nonpublic schools or tribally controlled schools; low-income students qualify if household income does not exceed 300% of federal poverty line.