State R&D Tax Credits

North Dakota

Credit Name: 57-38-30.5 Income Tax credit for Research and Experimental Expenditures

Expiration Date: Permanent

Does it apply to C corps and pass-through entities?: Yes

Credit Carry forward: Carry Back 3 years; Carry forward 15 years

Description: For the first $100k in excess expenses, the credit is 25% of ND excess expenses. For excess expenses over that amount, there are 3 methods depending on when the taxpayer began research:

  • 20%, if qualified research in North Dakota first begins in 2007 through 2010, or
  • 7½% for 2007, 11% for 2008, 14½% for 2009, and 18% for 2010 through 2016, if qualified research in North Dakota began before 2007, or
  • 8%, if qualified research in North Dakota first begins after 2010.

Other Notes:

  • Used credit cannot exceed taxpayer’s total liability
  • Statue Date 3 years
  • A Taxpayer may sell up to $100k of earned R&D Tax Credits
  • Limited to $2 million per taxpayer
  • Control groups can offset tax from any entity

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