ND HB1244

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

Changes credit eligibility requirement from "chronically mentally ill" to "severe mental illness" and requires the Department of Health and Human Services' vocational rehabilitation division to determine that the employee has a most significant disability, is eligible for services, and requires customized or supported employment.

Allows taxpayers to claim the credit against state income tax liability under sections 57-38-30 or 57-38-30.3, with a maximum credit equal to 50 percent of the taxpayer's total tax liability.

Requires taxpayers to apply to the vocational rehabilitation division and submit a certification letter with their tax return for each year the credit is claimed.

Effective for taxable years beginning after December 31, 2022.