Sixty-ninth Legislative Assembly of North Dakota
In Regular Session Commencing Tuesday, January 7, 2025
SENATE BILL NO. 2282
(Senators Hogan, Weber, Wobbema)
(Representatives Mitskog, O'Brien)
AN ACT to create and enact a new section to chapter 57-38 and new subdivision to subsection 7 of
section 57-38-30.3 of the North Dakota Century Code, relating to an income tax credit for child
care contributions provided by qualified employers; and to provide an effective date.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. A new section to chapter 57-38 of the North Dakota Century Code is created and
enacted as follows:
Child care contribution credit.
1.A taxpayer that is a qualified employer is entitled to a credit against the income tax liability
under section 57 - 38 - 30 or 57 - 38 - 30.3 as provided in this section. The total credit available
with respect to each qualified employer is equal to fifty percent of the taxpayer's aggregate
child care contributions paid during the taxable year. The credit must be claimed for the
taxable year in which the child care contributions are made.
2.The credit allowed under this section may not exceed the liability for tax under this chapter.
Any credit amount exceeding a taxpayer's liability for the taxable year may not be claimed as
a carryback or carryforward.
3.A passthrough entity entitled to the credit under this section must be considered to be the
taxpayer for purposes of this section and the amount of the credit allowed must be determined
at the passthrough entity level. The amount of the total credit determined at the passthrough
entity level must be allowed to the partners, shareholders, or members in proportion to their
respective interests in the passthrough entity.
4.To receive the tax credit provided under this section, a taxpayer shall claim the credit in the
form and manner prescribed by the tax commissioner. The tax commissioner shall prescribe,
design, and make available all forms necessary to effectuate this section.
5.For purposes of this section:
a."Aggregate child care contributions" means the total amount of child care contributions
made by a qualified employer to all qualified employees during the taxable year, limited
to the first one thousand dollars in child care contributions per qualified employee.
b."Child care costs" means costs incurred by an employee for early childhood services
rendered by a child care provider, which are incurred to enable the employee to be
gainfully employed by an employer.
c."Child care contribution" means a payment made to a child care provider by a qualified
employer to subsidize a qualified employee's child care costs and a payment made to a
qualified employee's child care costs.
d."Child care provider" means an early childhood services provider licensed under chapter
50 - 11.1 or a substantially similar provider that is licensed by another state and provides
early childhood services within ten miles of this state.
e."Early childhood services" has the same meaning as in section 50 - 11.1 - 02. S. B. NO. 2282 - PAGE 2
f."Qualified employee" means an individual employed by the qualified employer claiming
the credit under this section.
g."Qualified employer" means an employer that, in the taxable year:
(1)Made a child care contribution; and
(2)Provided an equal opportunity to all employees that have child care costs to receive
an equal child care contribution from the employer during the taxable year.
SECTION 2. A new subdivision to subsection 7 of section 57-38-30.3 of the North Dakota Century
Code is created and enacted as follows:
Child care contribution credit under section 1 of this Act .
SECTION 3. EFFECTIVE DATE. This Act is effective for taxable years beginning after
December 31, 2024. S. B. NO. 2282 - PAGE 3
____________________________ ____________________________
President of the Senate Speaker of the House
____________________________ ____________________________
Secretary of the Senate Chief Clerk of the House
This certifies that the within bill originated in the Senate of the Sixty-ninth Legislative Assembly of North
Dakota and is known on the records of that body as Senate Bill No. 2282.
Senate Vote:Yeas 47 Nays 0 Absent 0
House Vote: Yeas 80 Nays 13 Absent 1
____________________________
Secretary of the Senate
Received by the Governor at ________M. on _____________________________________, 2025.
Approved at ________M. on __________________________________________________, 2025.
____________________________
Governor
Filed in this office this ___________day of _______________________________________, 2025,
at ________ o’clock ________M.
____________________________
Secretary of State