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SB 2103

A BILL for an Act to create and enact a new subdivision to subsection 2 of section 57-38-30.3 of the North Dakota Century Code, relating to an individual income tax deduction for a segal Americorps education award; and to provide an effective date.

69th Legislative Assembly (2025-26) Introduced by Tim Mathern

Would have allowed ND taxpayers to subtract Segal AmeriCorps education awards from ND taxable income, avoiding double taxation; the bill was withdrawn.

Withdrawn from further consideration
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WeVote Research Nonpartisan
Bill Summary · SB 2103

Summary — SB 2103

Purpose

SB 2103 would have created a state individual income tax deduction in North Dakota for Segal AmeriCorps education awards. The intent is to prevent recipients of those federal education awards from owing additional North Dakota income tax on amounts already included in federal taxable income.

Key provisions

  • Adds a new subdivision to subsection 2 of section 57‑38‑30.3 of the North Dakota Century Code.
  • Allows a taxpayer to reduce North Dakota taxable income by the amount of a Segal AmeriCorps education award disbursed under 42 U.S.C. §12604 and received during the taxable year — but only to the extent that the award amount was included in the taxpayer’s federal taxable income.
  • Effective date: for taxable years beginning after December 31, 2024.

Who would be affected

  • Primary beneficiaries: North Dakota taxpayers who received Segal AmeriCorps education awards (federal education awards under 42 U.S.C. §12604) and who currently report those awards as federal taxable income.
  • Secondary effects: state tax preparers, the Office of State Tax Commissioner, and state budget analysts (because of revenue effects).
  • No change to federal tax treatment; this is a state-level subtraction/deduction.

Fiscal/administrative impact

  • The bill would reduce individual income tax revenue by the aggregate amount of Segal AmeriCorps awards claimed as deductions by eligible taxpayers. The summary materials do not include an estimated dollar value; the fiscal impact would depend on the number of recipients in North Dakota and award amounts.
  • Administrative impact is expected to be minor (adjusting state tax forms/instructions and processing).

Legislative history / status

  • The bill text provided indicates introduction in 2025 and includes an effective date provision.
  • According to the materials supplied, the bill was ultimately withdrawn from further consideration (status: Withdrawn from further consideration). As withdrawn, it did not become law.
  • Note: the packet provided contains mixed/duplicative materials (including text from an unrelated Illinois bill also labeled SB2103). The substantive tax provision described above corresponds to a North Dakota bill text (introduced by Senator Mathern in the supplied draft). The conflicting jurisdictional/sponsor details in the source materials appear to be an artifact of the document compilation; the summary above focuses on the North Dakota tax provision.

Compiled from official sources — confirm details with the bill’s official record.

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