North Dakota Capitol in Bismarck

(The Center Square) – Some North Dakotans will receive a credit on their state income taxes this year thanks to legislation passed last fall.

The North Dakota Legislature created a tax relief income credit for the state's residents. Gov. Doug Burgum was a strong proponent of this relief, recommending the state use its ending fund balance to benefit its residents.

"Full-year residents of North Dakota will receive a credit up to $350," Rachel Flagstad, public information officer at North Dakota Office of State Tax Commissioner, told The Center Square. "For taxpayers who are full-year residents and married filing jointly, the tax credit is up to $700. To be eligible for the credit, an individual must be a full-year resident of North Dakota for the tax year and have a tax liability (before any credits) on their North Dakota income tax return. The credit is non-refundable and cannot be carried over and used in any other tax year."

The legislation provides more than $200 million in tax relief over the next two years, according to the Bismarck Tribune. About 500,000 North Dakotans will be affected, either seeing a reduction or having no state income tax bill. 

"There is a line on the Individual Income Tax Return – Form ND-1 – for taxpayers to indicate if they are an individual filer and will receive up to the $350 credit or if they are married filing jointly and will receive up to the $700 credit," Flagstad said. "Many software that is used to electronically file taxes also includes the information."

The credit will not generate a refund or a negative liability. 

North Dakota has one of the lowest state income tax rates in the nation.

Residents are encouraged to file electronically and to file early. This year's filing deadline is April 18. The credit is available for the 2021 and 2022 tax years.