ND SB2237

Creates a child care income tax credit for taxpayers with combined federal adjusted gross income not exceeding $120,000 and who are North Dakota residents, part-year residents, or nonresident armed forces members.

Credit equals the greater of 40 percent of the federal child care expense credit claimed under Internal Revenue Code section 21 or 10 percent of the federal child tax credit claimed under Internal Revenue Code section 24.

Credit must be prorated based on the ratio of North Dakota taxable income to federal adjusted gross income.

Credit cannot exceed the taxpayer's income tax liability and cannot be carried back or forward to other tax years.

Effective for taxable years beginning after December 31, 2022.