North DakotaNorth Dakota employers can claim tax credits for child care help
For taxable years beginning after 2024, North Dakota employers that help pay employees’ child care costs can claim a limited income tax credit.
What it does
Qualified employers can claim a credit equal to half of their child care contributions, counting up to $1,000 per employee. They must offer equal contributions to all employees with child care costs.
A pass-through business’s credit is figured for the business, then shared among its owners based on their interests.
Argument forEmployers could lower the cost of helping workers pay for child care, while giving every employee with child care costs an equal chance to receive help.
Argument againstEmployers may receive less tax benefit than they expect because the credit cannot exceed their tax owed, and unused amounts cannot carry into another year.
More detail
The law allows a qualified employer to claim an income tax credit for child care contributions. A qualified employer makes a child care contribution and offers an equal contribution to all employees with child care costs. Contributions may pay a licensed child care provider or an employee’s child care costs that enable the employee to work. The credit equals 50% of contributions, counting no more than $1,000 per employee. The employer must offer an equal contribution to every employee with child care costs. The credit cannot exceed the employer’s tax owed, and any excess cannot be carried back or forward. The credit applies to taxable years beginning after December 31, 2024. The employer claims it for the year the contributions are made.
A pass-through business’s credit is determined at the business level and allocated among its owners. This applies to a pass-through business entitled to the child care contribution credit. Partners, shareholders, or members receive the credit in proportion to their interests in the business. The credit is for the taxable year when the child care contributions are made.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- May 2Filed with Secretary Of State 05/01Latest
- May 1Signed by Governor Kelly Armstrong 04/30Became Law
- Apr 29Sent to GovernorTo Governor
- Apr 29Signed by President
- Apr 28Signed by Speaker
- Apr 24Second reading, passed as amended, yeas 80 nays 13Major
- Vote recorded Motion for Final Passage on SB 2282. Result: pass.Lower
- Apr 24Conference committee report adopted
- Apr 21Reported back from conference committee, in place of, placed on calendarMinor
- Vote recorded Motion for Final Passage on SB 2282. Result: pass.Upper
- Apr 21Second reading, passed, yeas 47 nays 0Major
- Apr 21Conference committee report adopted
- Apr 18Reported back from conference committee, in place of, placed on calendarMinor
- Apr 16Appoint Rep. Hagert to replace Rep. D. Anderson on conference committee
- Apr 1Conference committee appointed Dockter Foss D. Anderson
- Mar 31Conference committee appointed Rummel Powers Marcellais
- Mar 31Refused to concur
- Mar 24Returned to Senate (12)
- Mar 21Second reading, passed as amended, yeas 72 nays 12Passed House
- Vote recorded Motion for Final Passage on SB 2282. Result: pass.Lower
- Mar 19Amendment adopted, placed on calendar
- Mar 18Reported back amended, do pass, amendment placed on calendar 9 4 1Minor
- Mar 12Committee Hearing 10:00
- Feb 18Introduced, first reading, referred Finance and Taxation CommitteeMinor
- Feb 7Received from Senate
- Feb 6Second reading, passed, yeas 46 nays 0Passed Senate
- Vote recorded Motion for Final Passage on SB 2282. Result: pass.Upper
- Feb 5Reported back, do pass, place on calendar 6 0 0Minor
- Jan 27Committee Hearing 10:00
- Jan 20Introduced, first reading, referred Finance and Taxation CommitteeIntroduced
Taxes & BudgetEconomy & Jobs