North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1388

Introduced
1/13/25  
Refer
1/13/25  
Report Pass
2/20/25  
Engrossed
2/25/25  
Refer
3/7/25  

Caption

The marriage penalty credit; and to provide an effective date.

Impact

The proposed changes in HB1388 would influence how taxable income is computed for couples filing jointly, potentially leading to tax breaks for many families. By lowering the tax burden for those affected by the marriage penalty, the bill may contribute to increased disposable income for those impacted—something that proponents argue will have broader economic benefits. However, since the marriage penalty has been a point of contention, these amendments could also lead to debates about equity in the tax system, particularly for single filers versus married couples.

Summary

House Bill 1388 seeks to amend the North Dakota Century Code concerning income tax rates applicable to individuals, estates, and trusts, as well as to address the marriage penalty credit. The bill proposes changes to the current tax structure which might include adjustments to how taxes are calculated based on income, aiming to alleviate the burden of the marriage penalty. By repealing the section that allowed for a specific marriage penalty credit, this bill is positioned to simplify income tax calculations for married couples, potentially benefiting those who would otherwise face a higher tax liability as a result of marrying.

Contention

Notably, the discussions surrounding HB1388 may generate significant debate among legislatures, with advocates arguing that removing the marriage penalty credit is necessary for a fair tax system, while opponents may contend that it disproportionately benefits higher-income earners at the expense of lower- and middle-income families. Critics might voice concerns that the repeal could negate essential financial benefits previously afforded to couples, shaping legislative opinion on the fairness and impacts of tax policy reform in North Dakota.

Companion Bills

No companion bills found.

Previously Filed As

ND HB1549

Income tax relief; and to provide an effective date.

ND HB1158

The homestead tax credit and income tax rates for individuals, estates, and trusts; to provide for a legislative management study; to provide for a legislative management report; to provide an appropriation; to provide an effective date; and to provide an expiration date.

ND HB1118

The marriage penalty credit; and to provide an effective date.

ND SB2066

The imposition of a flat income tax rate for individuals, estates, and trusts; to provide an effective date; and to provide an expiration date.

ND SB2015

A transfer of Bank of North Dakota profits to a water infrastructure revolving loan fund; to provide for a transfer; to provide an exemption; to provide for a legislative management study; to provide a report; to provide a penalty; to provide for application; to provide a retroactive effective date; to provide a contingent effective date; to provide an effective date; and to declare an emergency.

ND SB2237

A child care income tax credit; and to provide an effective date.

ND HB1383

The provision of an income tax credit for qualified compensation paid to an apprentice; and to provide an effective date.

ND HB1380

Determination of state school aid; to provide an appropriation; and to provide an effective date.

ND HB1176

An adoption tax credit and a tax credit for contributions to a maternity home, child-placing agency, or pregnancy help center; and to provide an effective date.

ND SB2357

A primary residence income tax credit; and to provide an effective date.

Similar Bills

No similar bills found.