Internship Employment Credit

Note: This credit is subject to the state and local tax clearance requirements.

An individual, estate, trust, partnership, corporation, or limited liability company is allowed an income tax credit for employing an individual under an internship program located in North Dakota. The credit is equal to 10% of the compensation paid to the intern. This credit is allowed for up to five interns employed at the same time. An employer is allowed no more than $3,000 of credits for all tax years.

An intern must be enrolled in a college or vocational technical education program majoring in a field related to the work to be performed, and must be supervised and evaluated by the employer. The internship must qualify for academic credit. In the case of a passthrough entity, such as a partnership or S corporation, the credit is passed through to its owners in proportion to their ownership interests.

Reference: N.D.C.C. § 57-38-01.24