North Dakota Tax Credit

If you are a North Dakota taxpayer, you may be able to claim a credit of 40% on a minimum donation of $5,000 to a qualified endowment through the North Dakota Charitable Income Tax Credit. This is on top of the savings you receive on your federal tax return by itemizing your qualifying charitable donation.

For individuals, North Dakota law allows a 40% state tax credit for contributions to qualified endowments of nonprofits. The contribution must be $5,000 or greater, and the maximum credit is $10,000 per year per taxpayer, or $20,000 per year per couple filing jointly.

For donors in a 28% federal tax bracket, the tax benefits may look like this:

Bismarck Library Foundation Inc Logo
Gift Amount:$5,000$10,000$25,000$50,000
Federal Tax Deduction-$840-$1,680-$4,200-$8,400
ND State Income Tax Credit-$2,000-$4,000-$10,000-$20,000
Net Cost of Gift$2,160$4,320$10,800$21,600

For businesses, contributions of $5,000 also may qualify for a 40% state tax credit. The maximum credit per year is $10,000.

View the Library Tax Credit (PDF) for more information or email Bismarck Library Foundation executive director Simon Moore.