Page 19

each taxable year at the time and rate adjustments are made to rate schedules under subdivision g of subsection 1 of section 57-38-30.3. 2. The credit under this section is the difference between the tax on the couple's joint North Dakota taxable income under the rates and income levels in subdivision b of subsection 1 of section 57-38-30.3 and the sum of the tax under the rates and income levels of subdivision a of subsection 1 of section 57-38-30.3 on the qualified income of the lesser-earning spouse, and the tax under the rates and income levels of subdivision a of subsection 1 of section 57-38-30.3 on the couple's joint North Dakota taxable income, minus the qualified income of the lesser-earning spouse. 3. For a nonresident or part-year resident, the credit under this section must be adjusted based on the percentage calculated under subdivision f of subsection 1 of section 57-38-30.3. 4. For purposes of this section: a. "Qualifying income" means the sum of the following, to the extent included in North Dakota taxable income: (1) Earned income as defined in section 32(c)(2) of the Internal Revenue Code; and (2) Income received from a retirement pension, profit-sharing, stock bonus, or annuity plan. b. "Qualifying income of the lesser-earning spouse" means the qualifying income of the spouse with the lesser amount of qualifying income for the taxable year minus the sum of: (1) The amount for one exemption under section 151(d) of the Internal Revenue Code; and (2) One-half of the amount of the standard deduction under section 63(c)(2)(A) (4) of the Internal Revenue Code. 57-38-01.29. Homestead income tax credit - Rules. Repealed by S.L. 2017, ch. 57, § 20. 57-38-01.30. Commercial property income tax credit - Rules. Repealed by S.L. 2017, ch. 57, § 20. 57-38-01.31. Employer tax credit for salary and related retirement plan contributions for mobilized employees. 1. A taxpayer who is an employer in this state is entitled to a credit against tax liability as determined under sections 57-38-30 and 57-38-30.3 equal to twenty-five percent of the reduction in compensation that the taxpayer continues to pay during the taxable year to, or on behalf of, each employee of the taxpayer during the period that the employee is mobilized under title 10 of the United States Code as a member of a reserve or national guard component of the armed forces of the United States. The maximum credit allowed for each eligible employee is one thousand dollars. The amount of the tax credit may not exceed the amount of the taxpayer's state tax liability for the tax year and an excess credit may be carried forward for up to five taxable years. For the purposes of this subsection: a. "Reduction in compensation" means the amount by which the pay received during the taxable year by the employee for service under title 10 of the United States Code is less than the total amount of salary and related retirement plan contributions that would have been paid by the taxpayer to the employee for the same time period had the employee not been mobilized. b. "Related retirement plan contributions" means the portion of voluntary or matching contributions paid by the taxpayer into a defined contribution plan maintained by the taxpayer for the employee. 2. A passthrough entity that is an employer in this state must be considered to be a taxpayer for purposes of this section. The amount of the credit determined at the Page No. 19