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p. Income tax credit for employment of individuals with developmental disabilities or severe mental illness under section 57-38-01.16. q. Adoption tax credit under section 57-38-01.38. r. Tax credit for contributions to a maternity home, child-placing agency, or pregnancy help center under section 57-38-01.39. s. Apprenticeship tax credit under section 57-38-01.40. t. Twenty-first century manufacturing and animal agricultural workforce incentive under section 57-38-01.41. u. Child care contribution credit under section 57-38-01.42. 8. A taxpayer filing a return under this section is entitled to the exemption provided under section 40-63-04. 9. a. If an individual taxpayer engaged in a farming business elects to average farm income under section 1301 of the Internal Revenue Code [26 U.S.C. 1301], the taxpayer may elect to compute tax under this subsection. If an election to compute tax under this subsection is made, the tax imposed by subsection 1 for the taxable year must be equal to the sum of the following: (1) The tax computed under subsection 1 on North Dakota taxable income reduced by elected farm income. (2) The increase in tax imposed by subsection 1 which would result if North Dakota taxable income for each of the three prior taxable years were increased by an amount equal to one-third of the elected farm income. However, if other provisions of this chapter other than this section were used to compute the tax for any of the three prior years, the same provisions in effect for that prior tax year must be used to compute the increase in tax under this paragraph. For purposes of applying this paragraph to taxable years beginning before January 1, 2001, the increase in tax must be determined by recomputing the tax in the manner prescribed by the tax commissioner. b. For purposes of this subsection, "elected farm income" means that portion of North Dakota taxable income for the taxable year which is elected farm income as defined in section 1301 of the Internal Revenue Code of 1986 [26 U.S.C. 1301], as amended, reduced by the portion of an exclusion claimed under subdivision d of subsection 2 that is attributable to a net long-term capital gain included in elected farm income. c. The reduction in North Dakota taxable income under this subsection must be taken into account for purposes of making an election under this subsection for any subsequent taxable year. d. The tax commissioner may prescribe rules, procedures, or guidelines necessary to administer this subsection. 10. The tax commissioner may prescribe tax tables, to be used in computing the tax according to subsection 1, if the amounts of the tax tables are based on the tax rates set forth in subsection 1. If prescribed by the tax commissioner, the tables must be followed by every individual, estate, or trust determining a tax under this section. 57-38-30.4. Income tax credit for comprehensive health association assessments. Repealed by S.L. 2009, ch. 545, § 32. 57-38-30.5. Income tax credit for research and experimental expenditures. A taxpayer is allowed a credit against the tax imposed under section 57-38-30 or 57-38-30.3 for conducting qualified research in this state. 1. The amount of the credit for taxpayers that earned or claimed a credit under this section in taxable years beginning before January 1, 2007, is calculated as follows: a. For the first taxable year beginning after December 31, 2006, the credit is equal to twenty-five percent of the first one hundred thousand dollars of the qualified research expenses for the taxable year in excess of the base amount and equal Page No. 37