State Credit Name: Income Tax Credit for Research and Experimental Expenditures
Expiration Date: Permanent
Who Can Apply? Corporations and flow-through entities
Credit Carry Forward: Unused credit can be carried forward 15 years and carried back 3 years.
About the Credit: The applicable percentage is 25% for the first $100,000 of excess expenses in a tax year. For excess expenses over $100,000 in a year, the applicable percentages are the following:
- 7.5% for 2007,
- 11% for 2008,
- 14.5% for 2009, and
- 18% for 2010-2016, if the qualified research in North Dakota began before 2007; or
- 8% if the research began after 2010.
Notes: Under certain conditions, a taxpayer may sell, transfer, or assign up to $100,000 of its unused tax credit to another taxpayer if the taxpayer selling the credit is certified by the Department of Commerce Division of Economic Development and Finance to be a primary sector business with annual gross revenues of less than $750,000 that conducts qualified research in North Dakota for the first time after December 31, 2006.
Click here to find out if you qualify for the federal research credit.
Contact your local Swanson Reed office to speak with a representative in your area today.