North Dakota State R&D Tax Credit
A taxpayer is allowed a credit against the tax for conducting qualified research in North Dakota.
How to obtain the credit?
A business must be certified as a “qualified research and development company” before a taxpayer can elect to sell, transfer, or assign all or part of its unused Research and Experimental Expenditure Tax Credit. To apply for certification, businesses must complete this application.
Refundable/Transferable Tax Credit – No
- For businesses that have only recently started conducting qualified research in North Dakota, the credit is equal to 25% of the first $100,000 of the qualified research expenses
- For expenses exceeding 100,000 in a year, the applicable percentage is 20% if qualified research first begins in 2007 through 2010, and 8% if qualified research begins after 2010
- Unused credits may be sold, assigned, or transferred to another taxpayer, as long as the taxpayer applies for certification to the North Dakota Commerce Department’s Division of Economic Development and Finance
If the credit exceeds the limitation, the excess can be used for up to a three year carry-back or a 15 year carry-forward.
For passthrough entities, such as a partnership or S corporation, the credit is passed through to its owners in proportion to their ownership interests.
Find out if you qualify for the R&D tax credit
SELL YOUR NOL’s AND R&D CREDITS
If your company hasn’t considered the R&D credit in the past because you have net operating losses (NOLs) and could not utilize the credit contact us today to find out which states allow you to sell your credits and losses for up to 95 cents on the dollar. Also, qualified start-up companies can now take a credit on their payroll taxes for their R&D credit, allowing your company to utilize the R&D credit immediately, even if your company does not have taxable income.
FIND OUT MORE TODAY
States and the R&D Credit: