Income tax credits are allowed for contributions to qualifying nonprofit elementary, high school and/or college or university schools located in North Dakota. A separate credit is allowed for each of the three categories of schools.
Contributions made to a school that provides education in one or more grades in both the primary school category (K through 8th grades) and secondary school category (9th through 12th grades), are allowed a separate credit for the amount contributed to each category of school. Unless the school provides the donor with a statement showing the amount specifically designated for the use of each category of school, one-half of the contribution will be deemed to have been made to each category of school. A taxpayer may elect to treat a contribution as having been made during a tax year if made on or before the due date, including extensions, for that tax year.
Qualifications
Contributions made directly to or specifically designated for the exclusive use of a qualifying school. If a contribution is made to an account, fund, or entity benefiting both qualifying and non-qualifying schools, it qualifies for the credit only if the entity provides the donor with a statement showing the amount specifically designated for the use of the qualifying school.
A taxpayer that holds an interest in a passthrough entity that qualifies for any of the three credits may claim its share of the tax credit in proportion to its interest in the entity. The credit must be claimed in the same taxable year in which the taxable year of the passthrough entity ends.
Credit Amounts
The tax credit for contributions made to all eligible schools in each category of institution is equal to the lesser of 50% of the contributions but not to exceed 50% of the North Dakota income tax or $2,500. Any excess credit may not be carried forward.
Application Process
Not Applicable.
How to Claim
If you're filing as a/an: | Claim the credit on: |
| Individual or Sole Proprietor | Schedule ND-1 PSC, Nonprofit Private School Tax Credits |
| C Corporation | Form 40, Corporation Income Tax Return Schedule TC |
| S Corporation | Form 60, S Corporation Income Tax Return Schedule K |
| Partnership | Form 58, Partnership Income Tax Return Schedule K |
| Fiduciary | Form 38, Fiduciary Income Tax Return Schedule 38-TC |